The stakeholder value proposition of digital platforms in an urban ecosystem

• Digital platforms can create value with city stakeholders through a substantive, localized, and dynamic stakeholder value proposition (SVP). • One of the first empirical operationalizations and evaluations of SVP delivery by a digital platform. • Process of joint value creation between digital platform and its stakeholders is possible, although it can be complex and gradual. • When SVP is not delivered to the city, conflict can escalate. • Stakeholder theory approach to business model design. Using a mixed-method approach, we assess the conditions under which digital platforms can successfully deliver their stakeholder value propositions (SVP)—declarative statements that the digital platform makes about how it adds value or solves a problem for target stakeholders—in cities. We examine the popular digital platform Airbnb in the touristic city of Barcelona and analyze the extent to which it delivers its value proposition to guests, hosts, and the city. Evidence suggests that Airbnb in Barcelona closely resembles the existing hotel industry, reinforcing over-tourism and inequality , which explains the adverse reactions Airbnb has faced from the city. We contrast this with the case of a nearby non-touristic city, Igualada, where the platform has delivered on its SVP. Our findings suggest that, while complex and gradual, the process of joint value creation between the digital platform and its stakeholders is possible and can be beneficial under conditions of mutual adjustment and business model adaptation. We uncover the substantive, localized, and dynamic characteristics of the SVP design process and discuss the academic, policymaking, and managerial implications of adequate platform design.