Critique Paper of Operations management in the age of the sharing economy



Benjaafar& Hu (2020) begin their article by describing to the reader what they mean by the term sharing economy, which they use severally within the narrative. According to the authors, shared economy describes the on-demand business models where an independent entity provides goods and services to numerous small clients. Several challenges associated with sharing economy arise, and the authors relate these business model challenges to classical operating management problems. Research in analytical models is integrated to help explain the context of sharing economy problems and classical OM challenges. The concept of sharing economy addressed in the article is related to on-demand access to goods and services. As the article progresses, Benjaafar & Hu (2020) divide the article into two sections. The first section talks about the three canonical applications associated with sharing economy. The second section discusses the connections between arising challenges in sharing economy and OM classical issues. Before completing their article, Benjaafar & Hu (2020) develop a conclusion comment section. Instead of availing a summary of their work, they focus on the primary themes that might emerge and later serve as topics for further research within the same context of sharing economy and its applicationCritique Paper of Operations management in the age of the sharing economy.




Benjaafar & Hu (2020) bring forth three applications of sharing economy that lay the foundation for developing the research article. The first application is peer-to-peer resource sharing. Modern economies operate on the concept that integrates exclusive ownership plus the use of resources. Those platforms that integrate peer-to-peer resource sharing provide the owners with the chance to rent out their assets to non-owner for a specific duration that is typically short(Benjaafar& Hu 2020). The individuals who have high usage are considered the property owners, whereas those who use the assets in the short run are the population that rents the assets for a specific time. Benjaafar & Hu (2020) note that peer-to-peer resource sharing shifts from the modes of demand and supply that are traditional in several ways. The first way is that peer-to-peer sharing results in many buyers plus sellers. This platform serves as an intermediary that decreases friction in the market and increases costs associated with searching and transacting. It also enables small actors on both sides of the platform, the buyers and sellers. The second concept is that there exists no distinction between the demand and supply sides. Furthermore, demand stimulates supply and vice versa.Critique Paper of Operations management in the age of the sharing economyBenjaafar& Hu (2020) suggest that peer-to-peer sharing can sustain the needs of consumption for at least one user.

According to Benjaafar & Hu (2020), the second application of sharing economy is on-demand service platforms. On-demand platforms link independent workers to individuals that require services that are typically time-sensitive. Examples of preexisting on-demand services include Uber and Lyft companies operating in the transportation industry. The workers offering on-demand services have the privilege of deciding the amount of time they want to allocate to the services they offer. This is the primary distinction between workers providing on-demand services. Like peer-to-peer sharing, the on-demand platform has several features that make it unique and separate from the traditional system of offering services. They include capacity influences demand and vice versa. Capacity is managed indirectly using aspects such as prices and salaries, and capacity and demand typically vary, and this variance is temporal and spatial.

The third application of sharing economies is on-demand rental networks. The on-demand rental networks are different from peer-to-peer sharing and on-demand platforms. These two usually depend on the interaction between resource owners and non-resource owners who rent the resources and independent workers and service users. The on-demand rental network describes the provision of goods and services by an independent organization that owns resources that are rented to users. This means users have the chance to rent assets for a short duration. Several features help distinguish on-demand rental networks from underlying traditional rentals. Benjaafar & Hu (2020) indicate that they include the non-requirement of advanced bookings, return or resources that have been rented from one location to another location, and spatial distribution of resourcesCritique Paper of Operations management in the age of the sharing economy.

In the second section, Benjaafar & Hu (2020) explore the underlying relationships between classical operation management approaches and approaches that have been incorporated when researching more concerning sharing economies. To do so, Benjaafar & Hu (2020) explore the central pillars of the operation management approach, which include inventory, revenue management, and queuing strategies. When discussing the inventory theory, Benjaafar & Hu (2020) discuss how it moves from controlled supply to uncontrolled supply. Benjaafar & Hu (2020) focus on the shift from exogenous capacity to endogenous capacity for revenue management. Benjaafar & Hu (2020) explain the queuing systems approach in terms of the transition from a fixed number of servers to a random number of serversCritique Paper of Operations management in the age of the sharing economy.


I agree with the findings of the study brought forth by Benjaafar & Hu (2020). Whereas some articles may lack to make the appropriate connections and may be biased, the research conducted by the researchers adds up. It is relevant to a reader in the economics department. Reading the article, I feel like the authors provide adequate information associated with sharing economies. In the beginning, the authors introduce the readers to the primary theme, the concept of sharing economies and their meaning. The introduction helps lay a foundation for the rest of the paper, with the reader having a clue concerning what to expect throughout the article. The application of sharing economies is well-documented and provides three canonical applications that are practical. These applications are essential in the real-word since they help explain how they are different from traditional operating and handling business and the benefits that accrue later from this process. The point of view of Benjaafar & Hu (2020) is applicable within the business world and can help solve any problems created by sharing economies as identified by the authors. Additionally, the authors strive to answer their problem statement or throughout the article by providing the application of sharing economies and theories that help explain the classical operation management problems and how they can be solvedCritique Paper of Operations management in the age of the sharing economy.


After analyzing the article, the authors utilize the classical operations management approach and the approaches that have been integrated when learning more about the application of shared economies. This helps them demonstrate the underlying modeling toolkit that makes sharing economy essential in the current world. Some real-world sharing economy applications include peer-to-peer resource sharing, on-demand service platforms, and on-demand rental networks. This is the first section of the article, which lays the foundation for the article since it ventures into more details concerning the sharing economy. The second section of the article talks about the underlying relationships between classical operation management approaches and approaches that have been incorporated when researching more concerning sharing economies. I find this article relevant since it clarifies the importance of sharing economy and how it can be applied for better performance. The data provided is well-researched and helps answer the main issue that the authors develop Critique Paper of Operations management in the age of the sharing economy.

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