Managing paradoxical tensions in platform-based modular solution networks

This paper explores paradoxical tensions and their management in modular solution networks on digital platforms. A case study approach was adopted to examine how two firms in the lighting facility and ICT industries use digital platforms to coordinate their diverse, large and dynamic modular solution networks. Our findings reveal that due to contradictory goals in offering diverse customized solutions, solution providers with digital platforms are facing several paradoxical tensions between flexibility and efficiency, control and autonomy, and standardization and customization. We find that solution providers cope with these paradoxes through implementing two simultaneous mechanisms: unification and diversification. While the diversification mechanism aims at increasing variety among modules and module providers, unification focuses on forming similarities among them. These mechanisms are made possible through digital platform features, such as algorithms, online communities and platform access. This study contributes to the B2B literature by highlighting the nested nature of paradoxical tensions in the context of modular solution networks and by identifying mechanisms for managing these paradoxes. It also offers practical tools to solution providers to identify and manage paradoxical tensions in platform-based modular solution networks.