Open Digital Commerce as Inclusive Business Model Innovation: An Embedded Case Study of ONDC and India’s Digital Public Infrastructure
Keywords:
Digital Public Infrastructure, Platform ecosystems, Inclusive innovation, India, Open digital commerceAbstract
This paper presents a revised case-study manuscript on the Open Network for Digital Commerce (ONDC) as an important example of business model innovation in an emerging digital economy. The study argues that ONDC is better understood not simply as another e-commerce initiative but as an open market architecture built on digital public infrastructure. Using an embedded case-study approach and a wide body of secondary evidence, the paper examines how interoperable payments, modular participation, service orchestration, compliance visibility, and inclusive design combine to make open digital commerce viable. The discussion shows that ONDC changes the basis of competition. In closed marketplaces, value capture often depends on controlling discovery, data, and traffic within one firm boundary. In ONDC, by contrast, value depends more on capability differentiation across buyer applications, seller applications, logistics, payments, analytics, and customer service. The paper further shows that the developmental promise of open commerce depends on merchant enablement, multilingual and accessible interfaces, accountable service recovery, and trust-building routines rather than on technical openness alone. Because of these features, the ONDC case also has wider implications for mobile payments, tax technology, tourism services, supply-chain transparency, entrepreneurship, inclusive digital support systems, and AI-enabled service design. The paper concludes that open digital commerce can widen participation and support innovation, but only when interoperability is matched with strong governance, operational capability, and user-centered service design.
References
1. Adner, R. (2017). Ecosystem as structure: An actionable construct for strategy. Journal of Management, 43(1), 39-58. https://doi.org/10.1177/0149206316678451
2. Adner, R., & Kapoor, R. (2010). Value creation in innovation ecosystems: How the structure of technological interdependence affects firm performance in new technology generations. Strategic Management Journal, 31(3), 306-333. https://doi.org/10.1002/smj.821
3. Akdoğan, L., & Durmaz, Y. (2024). Applications of artificial intelligence and machine learning in tourism marketing research. International Journal of Tourism and Hospitality Review, 1(t24/1), 45-54. https://doi.org/10.18510/ijthr.2024_t24_05
4. Ansarullah, S. I., Islam, M. I. U., Begum, G., & Bhat, N. A. (2025a). Leveraging digital tools to enhance school counselling: Case studies and best practices. In Enhancing School Counseling With Technology and Case Studies (pp. 49-72). IGI Global. https://doi.org/10.4018/979-8-3693-8392-6.ch003
5. Ansarullah, S. I., Islam, M. I. U., Ahmad, F., Danish, M., Dar, A. R., & Mufti, S. (2025b). Predicting stock markets using linear regression and cloud computing: A literature review and case study approach. In Advancements in Cloud-Based Intelligent Informative Engineering (pp. 331-352). IGI Global. https://doi.org/10.4018/979-8-3373-0781-7.ch015
6. Ansarullah, S. I., Ikhlaq, S., Yousuf, T., Islam, M. I. U., Mufti, S., & Fayaz, F. A. (2026). Quantum-enhanced artificial intelligence: The next frontier in computing and decision-making. In From Bits to Qubits: The Quantum Transformation of Computing (pp. 55-76). Springer. https://doi.org/10.1007/978-3-032-00586-1_4
7. Badouch, M., Boutaounte, M., Zioudi, O., & Mahmoud, H. (2025). The future of travel: A review of chatbot recommender systems in e-tourism and smart tourism. In Innovative Technologies on Electrical Power Systems for Smart Cities Infrastructure (pp. 103-115). Springer. https://doi.org/10.1007/978-3-031-86705-7_10
8. Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy: Toward a next generation of insights. MIS Quarterly, 37(2), 471-482. https://doi.org/10.25300/MISQ/2013/37:2.3
9. Bhat, S. A., & Islam, M. I. (2017). Impact of socio-political factors on trade conflict relationship. Indian Journal of Social Research, 58(4), 535-546.
10. Cnaan, R., Scott, M. L., Heist, H. D., & Moodithaya, M. S. (2023). Financial inclusion in the digital banking age: Lessons from rural India. Journal of Social Policy, 52(3), 1-22. https://doi.org/10.1017/S0047279421000738
11. Constantinides, P., Henfridsson, O., & Parker, G. G. (2018). Platforms and infrastructures in the digital age. Information Systems Research, 29(2), 381-400. https://doi.org/10.1287/isre.2018.0794
12. Dahlberg, T., Guo, J., & Ondrus, J. (2015). A critical review of mobile payment research. Electronic Commerce Research and Applications, 14(5), 265-284. https://doi.org/10.1016/j.elerap.2015.07.006
13. de Reuver, M., Sørensen, C., & Basole, R. C. (2018). The digital platform: A research agenda. Journal of Information Technology, 33(2), 124-135. https://doi.org/10.1057/s41265-016-0033-3
14. Desai, A., & Manoharan, A. P. (2024). Digital transformation and public administration: The impacts of India's digital public infrastructure. International Journal of Public Administration, 47(9), 575-578. https://doi.org/10.1080/01900692.2024.2350762
15. Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532-550. https://doi.org/10.2307/258557
16. Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1), 25-32. https://doi.org/10.5465/AMJ.2007.24160888
17. Gawer, A. (2021). Digital platforms and ecosystems: Remarks on the dominant organizational forms of the digital age. Innovation, 24(4), 1-15. https://doi.org/10.1080/14479338.2021.1965888
18. Gawer, A., & Cusumano, M. A. (2014). Industry platforms and ecosystem innovation. Journal of Product Innovation Management, 31(3), 417-433. https://doi.org/10.1111/jpim.12105
19. Han, E., Yin, D., & Zhang, H. (2023). Bots with feelings: Should AI agents express positive emotion in customer service? Information Systems Research, 34(3), 1296-1311. https://doi.org/10.1287/isre.2022.1179
20. Huang, M.-H., & Rust, R. T. (2018). Artificial intelligence in service. Journal of Service Research, 21(2), 155-172. https://doi.org/10.1177/1094670517752459
21. Islam, M. I. U. (2017). Education and entrepreneurship. International Journal of Technical Research & Science, 2(XI), 688-691.
22. Islam, M. I. U. (2025). Leveraging blockchain and IoT for sustainable supply chain management in Industry 4.0. In Next-Generation Data-Driven Business 4.0 Using the Internet of Things. Taylor & Francis. https://doi.org/10.1201/9781003568988-5
23. Islam, M. I. U., Khan, M. T., & Bhat, S. A. (2019). Effects of a political conflict on management activities. Purva Mimaansa, 10(1-2), 44-52.
24. Islam, M. I. U., Lone, U. M., Bhat, I. A., Aamir, S., & Salau, A. O. (2024). Open network for digital commerce in India: Past, present, and future. Open Information Science, 8(1), 20240005. https://doi.org/10.1515/opis-2024-0005
25. Islam, M. I. U., Nisa, K. U., Mufti, S., Ansarullah, S. I., & Ikhlaq, S. (2025a). Artificial intelligence in tax compliance: Transforming taxpayer behavior and system efficiency. In Modeling and Profiling Taxpayer Behavior and Compliance (pp. 251-270). IGI Global. https://doi.org/10.4018/979-8-3373-0422-9.ch011
26. Islam, M. I. U., Baba, M. M., Ahmad, A., & Ansarullah, S. I. (2025b). Redefining travel: Sustainable tourism, experiential travel, and dark tourism. In The Emerald Handbook of International Dark Tourism (pp. 81-97). Emerald Publishing. https://doi.org/10.1108/978-1-80592-501-920251005
27. Islam, M. I., Ansarullah, S. I., Nisa, K. U., Mufti, S., Dar, A. R., & Salau, A. O. (2026a). Social network design for disability peer support: Identifying barriers, applying standards, and implementing measurable solutions. Open Information Science, 10(1), 20250036. https://doi.org/10.1515/opis-2025-0036
28. Islam, M. I., Nisa, K. U., Ikhlaq, S., Yousuf, T., Gulzar, S., & Ansarullah, S. I. (2026b). Fostering social innovation through urban technologies. In Tech-Enabled Urbanism and Entrepreneurship for Inclusive Cities (pp. 103-119). Springer. https://doi.org/10.1007/978-981-95-3873-7_6
29. Jacobides, M. G., Cennamo, C., & Gawer, A. (2018). Towards a theory of ecosystems. Strategic Management Journal, 39(8), 2255-2276. https://doi.org/10.1002/smj.2904
30. Kumar, S., Chawla, D., & Nanehkaran, Y. A. (2022). The growth trajectory of UPI-based mobile payments in India: Enablers and inhibitors. International Journal of Finance & Banking Studies, 11(1), 78-90. https://doi.org/10.46281/ijfb.v11i1.1855
31. Kumar, R., Sharma, S. K., Singh, R. K., & Gupta, A. (2025). Blockchain technology in supply chain management: Innovations, applications, and challenges. Telematics and Informatics Reports, 100204. https://doi.org/10.1016/j.teler.2025.100204
32. Manzoor, R., Sahay, B. S., & Singh, S. K. (2022). Blockchain technology in supply chain management: An organizational theoretic overview and research agenda. Annals of Operations Research, 1-48. https://doi.org/10.1007/s10479-022-05069-5
33. Mason, A. N., Narcum, J., & Mason, K. (2021). Social media marketing gains importance after COVID-19. Cogent Business & Management, 8(1), 1870797. https://doi.org/10.1080/23311975.2020.1870797
34. Mehraj, D., Islam, M. I. U., Qureshi, I. H., Basheer, S., Baba, M. M., Nissa, V., Shah, M. A., & Shah, T. R. (2023). Factors affecting entrepreneurial intention for sustainable tourism among the students of higher education institutions. Cogent Business & Management, 10(3), 2256484. https://doi.org/10.1080/23311975.2023.2256484
35. Mehraj, D., Islam, M. I. U., Nissa, V. U., & Iqbal, S. (2024). Challenges and prospects in the adoption of mobile payment systems in India. In Business, Management and Economics Annual Volume 2024. IntechOpen. https://doi.org/10.5772/intechopen.114904
36. Nambisan, S., Lyytinen, K., Majchrzak, A., & Song, M. (2017). Digital innovation management: Reinventing innovation management research in a digital world. MIS Quarterly, 41(1), 223-238. https://doi.org/10.25300/MISQ/2017/41:1.03
37. Oliveira, T., Thomas, M., Baptista, G., & Campos, F. (2016). Mobile payment: Understanding the determinants of customer adoption and intention to recommend the technology. Computers in Human Behavior, 61, 404-414. https://doi.org/10.1016/j.chb.2016.03.030
38. Oxford Analytica. (2022). Indian government seeks to democratise e-commerce. Emerald Expert Briefings. https://doi.org/10.1108/OXAN-DB270925
39. Parsheera, S. (2022). Understanding state-level variations in India's digital transformation. The African Journal of Information and Communication, 30, 1-18. https://doi.org/10.23962/ajic.i30.15082
40. Press Information Bureau. (2022, December 16). A test pilot of ONDC network launched in April, 2022 across 5 cities. Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1884181
41. Rawanda, M. I. U. I. (2025). Transforming customer service with AI agents: Enhancing efficiency and personalisation in the service sector: Balancing automation and the human touch. In Harnessing Emotion AI for Customer Support and Employee Wellbeing (pp. 241-268). IGI Global. https://doi.org/10.4018/979-8-3373-3658-9.ch010
42. Rawanda, L., & Rawanda, M. I. U. I. (2021). Issues and problems faced by children in conflict with law during and after their detention. Sri Lanka Journal of Social Sciences, 44(2), 213-226. https://doi.org/10.4038/sljss.v44i2.8055
43. Sahu, P. K., Chakraborty, A., & Banerjee, P. (2025). From a cash-heavy to a cashless economy: How UPI is revolutionizing rural India's ease-of-doing business. Vikalpa. Advance online publication. https://doi.org/10.1177/02560909251389732
44. Siggelkow, N. (2007). Persuasion with case studies. Organization Science, 18(1), 20-24. https://doi.org/10.1287/orsc.1060.0217
45. Sia, P. Y.-H., Saidin, S. S., & Iskandar, Y. H. P. (2023). Systematic review of mobile travel apps and their smart features and challenges. Journal of Hospitality and Tourism Insights, 6(5), 2115-2138. https://doi.org/10.1108/JHTI-02-2022-0087
46. Susanu, S. A., Bleoju, G., Petropoulos, A. T., & Matric, A. (2025). Artificial intelligence applications for marketing. Annals of "Dunarea de Jos" University of Galati, Fascicle I. Economics and Applied Informatics, 31(2), 1-11. https://doi.org/10.35219/eai15840409517
47. ul Islam, M. I., Nisa, K. U., Ansarullah, S. I., Mufti, S., Danish, M., Ajala, O., & Salau, A. O. (2025a). Leveraging AI-generated visuals for enhancing management of career orientation: A quasi-experimental study. Open Information Science, 9(1), 20250019. https://doi.org/10.1515/opis-2025-0019
48. ul Islam, M. I., Ahmad, F., Nissa, V.-u., & Ansarullah, S. I. (2025b). The future of machine learning and artificial intelligence in finance. In Utilizing AI and Machine Learning in Financial Analysis (pp. 491-508). IGI Global. https://doi.org/10.4018/979-8-3693-8507-4.ch026
49. Padma Kiran, K., & Vedala, N. S. (2025). Assessing Unified Payments Interface (UPI) adoption and usage through the interplay of UTAUT factors. Humanities and Social Sciences Communications, 12, 1060. https://doi.org/10.1038/s41599-025-05313-w
50. Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118-144. https://doi.org/10.1016/j.jsis.2019.01.003
51. Wirtz, J., Patterson, P., Kunz, W., Gruber, T., Lu, V. N., Paluch, S., & Martins, A. (2018). Brave new world: Service robots in the frontline. Journal of Service Management, 29(5), 907-931. https://doi.org/10.1108/JOSM-04-2018-0119
52. Yoo, Y., Henfridsson, O., & Lyytinen, K. (2010). The new organizing logic of digital innovation: An agenda for information systems research. Information Systems Research, 21(4), 724-735. https://doi.org/10.1287/orsc.1100.0533
53. Ziakis, C., Vlachopoulou, M., Kyrkoudis, T., & Karagkiozidou, M. (2023). Artificial intelligence in digital marketing: Insights from a systematic review. Information, 14(12), 664. https://doi.org/10.3390/info14120664
Downloads
Published
Issue
Section
License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
