ALGORITHMIC MANAGEMENT OF SMALL ENTERPRISES IN THE GIG ECONOMY
DOI:
https://doi.org/10.32782/2786-8273/2026-14-12Keywords:
small business, algorithmic management, gig economy, digital platforms, algorithmic asymmetry index, multi-homing, D2C channels, algorithmic reverse engineeringAbstract
Introduction. The rapid expansion of the platform and gig economy transforms small and medium-sized enterprises (SMEs) from autonomous market agents into dependent actors governed by third-party algorithmic architectures. Purpose. The study aims to conceptualize the mechanisms of algorithmic management in small business operations, quantify platform dependency and algorithmic asymmetry, and substantiate strategic tools to preserve managerial autonomy. Methods. The research utilizes structural-functional analysis, conceptual modeling (to build the multi-level algorithmic decomposition framework), mathematical formalization (to construct the Integral Algorithmic Asymmetry Index), and strategic matrix positioning. Results. It is proven that algorithmic management acts as an institutional mechanism redistributing market power from SMEs to digital platforms. A conceptual model of multi-level algorithmic decomposition is developed, outlining four levels of business algorithmization (L1–L4) based on the degree of managerial sovereignty loss. A methodological approach for assessing platform dependence is proposed via the Integral Algorithmic Asymmetry Index (IAA), substantiating its critical threshold (IAA≥0.7). Key destructive effects of platform dominance are identified: the algorithmic rent trap (Pay-to-Play), forced price dumping, and asymmetric automated sanctions. A strategic adaptation matrix is developed, incorporating multi-homing, Direct-to-Consumer (D2C) channel establishment, and algorithmic reverse engineering. Conclusion. Mitigating algorithmic risks requires shifting from reactive compliance to proactive multi-platform diversification and proprietary client capital development.
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