Journal of Management Research and Review (JMRR) · Research article · Open access

Network Effects Simulation Model for Multi-Sided Platforms in B2B Transactions

Babajide Oluwaseun Olaogun, Adaobu Amini-Philips, Ayomide Kashim Ibrahim

12 November 2025 · Vol. 1, Issue 5, pp. 176-195

DOI: 10.65150/EP-jmrr/V1E5/2025-03

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Abstract

The proliferation of multi-sided platforms (MSPs) in business-to-business (B2B) transactions has fundamentally transformed commercial ecosystems, creating complex networks where value creation emerges from strategic interactions between multiple participant groups. This research presents a comprehensive simulation model designed to analyze and predict network effects within B2B multi-sided platforms, addressing critical gaps in understanding how platform dynamics influence transaction efficiency, participant retention, and ecosystem growth. The study develops a sophisticated mathematical framework that integrates game-theoretic principles, network topology analysis, and agent-based modeling to simulate the emergence and sustainability of network effects in B2B environments. Our research methodology employs a mixed-methods approach combining quantitative simulation techniques with qualitative case study analysis across diverse B2B platform ecosystems. The simulation model incorporates key variables including participant heterogeneity, transaction costs, switching barriers, platform governance mechanisms, and competitive dynamics to generate realistic scenarios of network evolution. Through extensive computational experiments and validation against real-world platform data, we demonstrate the model's capacity to predict critical tipping points, identify optimal platform strategies, and forecast long-term ecosystem sustainability. The findings reveal that network effects in B2B multi-sided platforms exhibit distinct characteristics compared to consumer-oriented platforms, with stronger emphasis on trust-building mechanisms, specialized service integration, and institutional relationship dynamics. The simulation model successfully identifies optimal participant acquisition strategies, reveals the criticality of early-stage platform governance decisions, and quantifies the impact of competitive entry on established platform ecosystems. Our results indicate that successful B2B platforms require sophisticated balancing mechanisms to manage power asymmetries between different participant groups while maintaining sufficient incentives for continued platform engagement. The research contributes to both theoretical understanding and practical application by providing platform operators, investors, and policymakers with data-driven insights for strategic decision-making. The simulation framework offers predictive capabilities for scenario planning, risk assessment, and platform design optimization. Furthermore, the study establishes a foundation for future research in platform economics, network theory, and digital business model innovation within B2B contexts.

Keywords: multi-sided platforms, network effects, B2B transactions, simulation modeling, platform economics, digital ecosystems, agent-based modeling, game theory

Babajide Oluwaseun Olaogun, Adaobu Amini-Philips, & Ayomide Kashim Ibrahim (2025). Network Effects Simulation Model for Multi-Sided Platforms in B2B Transactions. Journal of Management Research and Review, 1(5), 176-195. https://doi.org/10.65150/EP-jmrr/V1E5/2025-03

@article{Babajide2025,
  title   = {Network Effects Simulation Model for Multi-Sided Platforms in B2B Transactions},
  author  = {Babajide Oluwaseun Olaogun and Adaobu Amini-Philips and Ayomide Kashim Ibrahim},
  journal = {Journal of Management Research and Review},
  year    = {2025},
  volume  = {1},
  number  = {5},
  pages   = {176-195},
  doi     = {10.65150/EP-jmrr/V1E5/2025-03},
  url     = {https://doi.org/10.65150/EP-jmrr/V1E5/2025-03}
}

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