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The virtual cathedral and the virtual bazaar

Published: 28 October 2007 Publication History

Abstract

Applying economic analysis, we explore the potential benefits and risks associated with firm-based and social production models and derive conditions that determine when open or closed innovation models are more appropriate. We contrast the newly emerging "user-generated approach" to innovation in virtual worlds with the traditional "producer-controlled approach". Taking the cases of World of Warcraft and Second Life, we show how the two virtual world providers use very different strategies to organize the creation of game content. We conclude with presenting a roadmap that businesses can use to conceive effective innovation and development strategies for designing virtual world offerings.

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  • (2019)Enabling value co-creation with consumers as a driver of business performance: A dual perspective of Polish manufacturing and service SMEsJournal of Business Research10.1016/j.jbusres.2018.12.067Online publication date: Jan-2019
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Published In

cover image ACM SIGMIS Database: the DATABASE for Advances in Information Systems
ACM SIGMIS Database: the DATABASE for Advances in Information Systems  Volume 38, Issue 4
November 2007
101 pages
ISSN:0095-0033
EISSN:1532-0936
DOI:10.1145/1314234
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Association for Computing Machinery

New York, NY, United States

Publication History

Published: 28 October 2007
Published in SIGMIS Volume 38, Issue 4

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Author Tags

  1. digital entertainment
  2. innovation
  3. non-market collaboration
  4. outsourcing
  5. peer production
  6. producer-consumer collaboration
  7. social production
  8. theory of the firm
  9. user-generated content
  10. virtual worlds

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Cited By

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  • (2022)A Decentralized Network to Support Funding with Ethereum Smart ContractElectronic Systems and Intelligent Computing10.1007/978-981-16-9488-2_5(49-59)Online publication date: 3-Jun-2022
  • (2021)Enabling service innovation and firm performance: the role of co-creation and technological innovation in the hospitality industryTechnology Analysis & Strategic Management10.1080/09537325.2021.191961434:7(774-786)Online publication date: 5-May-2021
  • (2019)Enabling value co-creation with consumers as a driver of business performance: A dual perspective of Polish manufacturing and service SMEsJournal of Business Research10.1016/j.jbusres.2018.12.067Online publication date: Jan-2019
  • (2017)Knowledge-dissemination channelsJournal of the Association for Information Science and Technology10.1002/asi.2372568:4(911-930)Online publication date: 1-Apr-2017
  • (2013)Selectively Employing Open-Source Resources for Online LearningOpen-Source Technologies for Maximizing the Creation, Deployment, and Use of Digital Resources and Information10.4018/978-1-4666-2205-0.ch017(300-308)Online publication date: 2013
  • (2013)Risks and uncertainties in virtual worlds: an educators’ perspectiveJournal of Computing in Higher Education10.1007/s12528-013-9067-525:2(49-67)Online publication date: 15-Mar-2013
  • (2012)Impact of Flow and Brand Equity in 3D Virtual WorldsCross-Disciplinary Models and Applications of Database Management10.4018/978-1-61350-471-0.ch011(277-297)Online publication date: 2012
  • (2011)Understanding Risk and Risk-Taking Behavior in Virtual WorldsSecurity in Virtual Worlds, 3D Webs, and Immersive Environments10.4018/978-1-61520-891-3.ch004(59-71)Online publication date: 2011
  • (2010)Impact of Flow and Brand Equity in 3D Virtual WorldsJournal of Database Management10.5555/2448027.244803021:3(69-89)Online publication date: 1-Jul-2010
  • (2010)Impact of Flow and Brand Equity in 3D Virtual WorldsJournal of Database Management10.4018/jdm.201007010321:3(69-89)Online publication date: 1-Jul-2010
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