Making internet communities work: reflections on an unusual business model

  • Authors:
  • Bernhard L. Krieger;Philipp S. Müller

  • Affiliations:
  • University of Maastricht, Maastricht;German Institute for International and Security Affairs, Berlin

  • Venue:
  • ACM SIGMIS Database
  • Year:
  • 2003

Quantified Score

Hi-index 0.00

Visualization

Abstract

Building Internet communities has been hailed as one of the major strategic innovations of the New Economy, both as a stand-alone model or as a supplement to sustain competitive advantage for normal business models. Community based business models aim to profit from the value that is created when Internet communities solve problems of collective action, by controlling access, aggregating data, or realizing side-payments.The current literature on community based business models relies on methodological individualism to explain why members join and leave Internet communities. However, such an approach cannot sufficiently describe and explain communities because they are by definition more than an aggregation of its members.We, on the other hand, offer a metaphorical approach to conceptualize communities. Metaphors have a double function for communities: to explain the community to its members and thereby legitimize and reproduce it, and to describe the belief of community members to outsiders in order to operationalize it.With the metaphorical approach we develop a framework to build profitable Internet communities. If an internet community can be legitimized and reproduced community-value is created. However, that does not yet mean that it can be translated into profit, as many I Internet entrepreneurs had to realize. To translate the community-value into profit, the communal entrepreneur must position it in its competitive environment.