Platform companies on the internet as a new organizational form. A sociological perspective

Abstract

Today’s internet is shaped by privately operated platforms that not only organize economic processes but also coordinate and regulate broader societal contexts. Against this background, this conceptual paper develops a sociological notion of platform companies and the platforms they operate as a new type of enterprise that consists not only of economic features (business and revenue models, exploitation patterns, market relations) but also of action-orienting rules, institutional infrastructures and social relations between a great variety of individual, corporate and collective actors that clearly reach beyond economic contexts and far into society. To this end, we specify the often fuzzy talk of ‘the platforms’ by drawing an analytical distinction between (1) the platform-operating companies as organizing cores whose goal is to operate a profitable business; (2) the platforms belonging to them as technically mediated market and social action spaces that provide the basis for not only economic but also genuine social activities on today’s internet; and (3) the institutionalized coordination, control and exploitation mechanisms implemented by the platform operators, linking these two constitutive levels of the platform architecture.

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