Commoditization of micro and small businesses through digital platforms: an analysis in the Microregion of Varginha.

Abstract

The momentum generated by the growth of the online market, particularly during and after the COVID-19 pandemic, has resulted in an increasing involvement of micro and small enterprises (MSEs) in shared economy platforms (digital platforms). MSEs have recognized unique opportunities within digital platforms to expand their customer base, enhance their market share, and augment their revenues. Nevertheless, scientific literature has revealed several manifestations of power inequality between digital platforms and user enterprises. It is observed that the power bases of these platforms are techno-economic in nature, enabling them to influence negotiations, reconfigure algorithms, and reshape engagement in alignment with their own priorities. The platforms possess technical capabilities to access and control data from all actors within their ecosystem, thereby exerting control over services and estimates, even determining the entry or persistence of entrepreneurs in specific markets. These characteristics drive the growth of digital platforms and extend their market dominance, as the interdependence of MSEs on digital platforms continues to expand. MSEs increasingly find themselves reliant on these platforms to support their digitalization initiatives and mitigate the limitations of typically inadequate resources. Thus, this research project aims to analyze the relationship between micro and small enterprises in the Varginha Microregion and digital platforms. Methodologically, the study is characterized by a qualitative approach, inductive logic, and interpretivist epistemology, conducted through multiple case studies. Data will be collected through semi-structured interviews and analyzed using Lexical Analysis and Content Analysis techniques.