Peer-to-peer selling in online platforms: A salient business model for virtual entrepreneurship

Although peer-to-peer (P2P) selling platforms enable entrepreneurs to set-up virtual businesses with relative ease, business models in P2P platforms remain an unexamined area. To address this gap, we use cross-disciplinary theory from marketing, strategic management, and business models to identify new value drivers in this context. Thus, this study makes an original contribution by developing and empirically testing components of a business model relevant to P2P platforms. Data from 366 virtual entrepreneurial firms was analyzed using structural equation modeling. Results highlight the significance of a holistic business model, that is, rather than their independent contribution, a synergistic combination of four value drivers (IPIN: Information processing capability, Product portfolio complexity, Innovative practices and Network membership) is critical to firm performance and satisfaction. The novelty lies in being the first to identify a salient business model in the P2P context that has practical and theoretical implications for virtual entrepreneurship.