With the rapid development and widespread adoption of digital technology, two-sided platforms increasingly leverage digital technology to enhance operations and facilitate transactions. However, varying levels of acceptance among consumers and providers present platforms with three strategic options for technology adoption: no adoption, partial adoption, or full adoption. Although previous studies have explored technology adoption decisions in two-sided platforms, there remains a research gap in the choice between partial and full technology adoption. This paper aims to address this gap by developing a game-theoretic model to analyze the impact of different technology adoption strategies on two-sided platforms, consumers, and providers. Our findings reveal that the adoption of digital technology can increase both service supply and demand but decrease service prices and commission rates. Notably, in the scenario of partial technology adoption, the price of traditional services is higher than when technology is not adopted. Moreover, we demonstrate that higher operating costs do not necessarily incentivize the platform to adopt digital technology. Specifically, platforms are more likely to partially adopt technology when operating costs are low and fully adopt it when costs are moderate. Furthermore, we find that partial technology adoption can generate more consumer and provider surplus but may reduce overall social welfare. Our study provides strategic guidance for platform managers regarding adopting digital technology within their operations management.

@article{xiaoxiaowang-2026-1719,
  title={Partial vs Full Technology Adoption: Strategic Implications for Two-Sided Platform},
  author={Xiaoxiao  Wang and Changyong  Liang and Jingxian  Chen and Dong-Qing  Yao},
  journal={Operations and Supply Chain Management: An International Journal},
  year={2026},
  volume={19},
  number={1},
  pages={114--134},
  doi={10.31387/oscm0640510}
}

Xiaoxiao  Wang, Changyong  Liang, Jingxian  Chen, Dong-Qing  Yao (2026). Partial vs Full Technology Adoption: Strategic Implications for Two-Sided Platform. Operations and Supply Chain Management: An International Journal, 19(1), 114-134. https://doi.org/10.31387/oscm0640510