The value of competing in virtual communities: use and exchange value creation in online auctioning

Mihai Calin, Lazaros Goutas (), Juliana Sutanto and Dennis Galletta
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Mihai Calin: D-MTEC - Department of Management, Technology, and Economics [ETH Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
Lazaros Goutas: D-MTEC - Department of Management, Technology, and Economics [ETH Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
Juliana Sutanto: D-MTEC - Department of Management, Technology, and Economics [ETH Zürich] - ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]
Dennis Galletta: PITT - University of Pittsburgh - Pennsylvania Commonwealth System of Higher Education (PCSHE)

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Abstract: In this paper, we set out to examine how individual and organizational benefits are created in virtual communities characterized by competitive relationships. Drawing insights from value theory, we argue that individual benefits arise from the use value/satisfaction that users gain from their participation in such communities, whereas organizational benefits are derived from the aggregate monetary value that is created through competition among users, also understood as exchange value. Moreover, we hypothesize that the ways in which users compete and the level of rivalry among users influence the aforementioned types of value creation. We test our hypotheses in the context of a self-developed mobile application that serves as an auctioning platform for hotel rooms. A preliminary analysis grants initial support to our hypotheses. Our research contributes to the relevant literature by highlighting the diverse benefits that competitive relationships can bring and paves the way for further research on alternative community models.

Date: 2014-12-14
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Published in ICIS 2014 : International Conference of Information Systems, Dec 2014, Auckland, New Zealand

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05008132

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