Sustainable Competitive Advantage in the Era of Digital Platforms: A Systematic Review

Abstract

The rapid proliferation of digital platforms has fundamentally transformed the competitive dynamics of modern industries, challenging traditional sources of sustainable competitive advantage. Firms increasingly operate within interconnected digital ecosystems where value creation is driven by data, network effects, platform governance, and innovation capabilities. This study presents a systematic review of existing literature on sustainable competitive advantage in the era of digital platforms with the aim of synthesizing key theoretical perspectives, identifying major drivers of competitive advantage, and highlighting emerging research directions. Using a structured systematic review methodology, relevant peer-reviewed articles were identified from leading academic databases and analyzed based on thematic patterns, theoretical foundations, and empirical insights. The findings reveal that sustainable competitive advantage in platform-based environments is primarily shaped by several interrelated factors, including platform architecture, network effects, data-driven capabilities, ecosystem orchestration, and continuous innovation. Digital platforms enable firms to create value not only through internal resources but also through the coordination of external stakeholders such as developers, partners, and users. The review further shows that firms that effectively manage platform governance, leverage big data analytics, and foster collaborative innovation within ecosystems are more likely to maintain long-term competitive positions. Additionally, the study highlights the evolving role of dynamic capabilities in enabling organizations to adapt to rapid technological changes and competitive pressures within platform ecosystems. This study contributes to the literature by integrating fragmented research on digital platforms and competitive strategy into a comprehensive conceptual understanding of how sustainable competitive advantage is achieved in digitally mediated markets. The review also identifies important gaps in current scholarship, particularly regarding platform sustainability, regulatory challenges, and the long-term resilience of digital ecosystems. The findings provide valuable insights for scholars and practitioners seeking to understand strategic management in the digital platform economy and offer directions for future research on platform-based competition and innovation.