Abstract
- Incumbent firms, representing traditional business models, confront substantial challenges from the sharing economy. Many incumbent public firms are opting for collaboration over competition with sharing economy entities. However, the specific benefits of such cooperation for incumbent firms, along with the underlying mechanisms influencing market reactions, remain unclear. Utilizing a dataset focused on collaborations between U.S. Fortune 500 companies and sharing economy firms, we categorize the primary types of cooperation and identify patterns of sharing economy firms. Grounded in Resource Dependence Theory (RDT), we construct an integrated RDT framework to unveil the mechanism of interorganizational cooperation. Employing an event study, we analyze the market reaction surrounding these cooperation events, aiming to contribute nuanced insights to the understanding of collaboration in the evolving landscape between traditional and sharing economy businesses.