Computer Science
4 years ago

Firm-hosted online communities revolutionize value creation and capture strategies.

Academy of Management Proceedings
Being a Good Host: Transforming Value Creation Into Value Capture in Firm-Hosted Online Community
Marie Joachim, Christine Abdalla Mikhaeil

Paper Summary

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Firms are creating online communities to connect with customers and make more money. By offering extra value beyond just selling products, firms can make more profit. A study found that firms can use two processes, called upcycling and downcycling, to turn the value they create in these online communities into money. This shows that firms can control how they make money by using these online communities.