Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • September–October 2017
  • Article
  • Harvard Business Review

Managing Our Hub Economy: Strategy, Ethics, and Network Competition in the Age of Digital Superpowers

By: Marco Iansiti and Karim R. Lakhani
  • Format:Print
ShareBar

Abstract

A small number of digital superpowers—Alibaba, Amazon, Microsoft, and others—have become “hub firms” because they control access to billions of mobile customers coveted by all kinds of product and service providers. These hubs drive increasing returns to scale and claim a disproportionate share of the value being created in the global economy. The authors argue that the hub economy will continue to spread across more industries, concentrating more power in the hands of a few. As an example, they take an in-depth look at the auto industry and how Apple and Alphabet/Google are poised to become the main beneficiaries as cars turn into digitally connected spaces for work, entertainment, and shopping. As hubs proliferate and expand their reach, the danger is that they will exacerbate economic inequality and threaten social stability. It is thus incumbent on all stakeholders—traditional companies, start-ups, institutions, and communities—to make certain changes in the ways they do business. Moreover, hub firms themselves must do a better job leading responsibly for the good of all, not just creating and capturing value but doing more to sustain other players in the ecosystem.

Keywords

Competition; Strategic Planning; Auto Industry; Technology Industry

Citation

Iansiti, Marco, and Karim R. Lakhani. "Managing Our Hub Economy: Strategy, Ethics, and Network Competition in the Age of Digital Superpowers." Harvard Business Review 95, no. 5 (September–October 2017): 84–92.
  • Find it at Harvard
  • Register to Read

About The Authors

Marco Iansiti

Technology and Operations Management
→More Publications

Karim R. Lakhani

Technology and Operations Management
→More Publications

More from the Authors

    • 2023
    • Faculty Research

    Setting Gendered Expectations? Recruiter Outreach Bias in Online Tech Training Programs

    By: Jacqueline N. Lane, Karim R. Lakhani and Roberto Fernandez
    • 2023
    • Faculty Research

    How Wicked Problems Drive Business Performance: A Review of the Academic Literature

    By: Caroline Adelson, Charlotte Kuller, Cate Tompkins, Ellora Sarkar, Samantha Price and Marco Iansiti
    • 2023
    • Faculty Research

    Firm Purpose and Problem Wickedness: A Review of the Academic Literature

    By: Caroline Adelson, Charlotte Kuller, Cate Tompkins, Ellora Sarkar, Samantha Price and Marco Iansiti
More from the Authors
  • Setting Gendered Expectations? Recruiter Outreach Bias in Online Tech Training Programs By: Jacqueline N. Lane, Karim R. Lakhani and Roberto Fernandez
  • How Wicked Problems Drive Business Performance: A Review of the Academic Literature By: Caroline Adelson, Charlotte Kuller, Cate Tompkins, Ellora Sarkar, Samantha Price and Marco Iansiti
  • Firm Purpose and Problem Wickedness: A Review of the Academic Literature By: Caroline Adelson, Charlotte Kuller, Cate Tompkins, Ellora Sarkar, Samantha Price and Marco Iansiti
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College