A Test of Two Models of Value Creation in Virtual Communities.

Author List: Porter, Constance Elise; Devaraj, Sarv; Sun, Daewon;

Journal of Management Information Systems, 2013, Volume 30, Issue 1, Page 261-292.

Does a firm get any extra value from investing resources in sponsoring its own virtual community above and beyond the value that could be created for the firm, indirectly, via customer-initiated communities? If so, what explains the extra value derived from a firm-sponsored virtual community and how might this understanding inform managers about appropriate strategies for leveraging virtual communities as part of a value-creating strategy for the firm? We test two models of virtual community to help shed light on the answers to these questions. We hypothesize that in customer-initiated virtual communities, three attributes of member-generated information (MGI) drive value, while in firm-sponsored virtual communities, a sponsoring firm's efforts, as well as MGI, drive value. Drawing on information search and processing theories, and developing new measures of three attributes of MGI (consensus, consistency, and distinctiveness), we surveyed 465 consumers across numerous communities. We find that value can emerge via both models, but that in a firm-sponsored model, a sponsor's efforts are more powerful than MGI and have a positive, direct effect on the trust-building process. Our results suggest a continuum of value creation whereby firms extract greater value as they migrate toward the firm-sponsored model.

Keywords: attribution theory; co-creation; online communities; online trust; user-generated content; virtual communities

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#143	0.182	value business benefits technology based economic creation related intangible cocreation assessing financial improved key economics assess question created create understanding
#45	0.129	community communities online members participants wikipedia social member knowledge content discussion collaboration attachment communication law virtual membership structures forms activities
#120	0.113	virtual world worlds co-creation flow users cognitive life settings environment place environments augmented second intention spatial interactivity ownership objects immersive
#173	0.101	effect impact affect results positive effects direct findings influence important positively model data suggest test factors negative affects significant relationship
#161	0.089	role relationship positively light important understanding related moderating frequency intensity play stronger shed contribution past considered maintenance effort effect specifically
#191	0.076	model models process analysis paper management support used environment decision provides based develop use using help literature mathematical presented formulation
#10	0.056	strategies strategy based effort paper different findings approach suggest useful choice specific attributes explain effective affect employ particular online control