Crowdsourcing: Latest business fad or wellspring of value creation?

This study seeks to examine the value creation potential of crowdsourcing in the light of recent strategic management literature. A theory building approach is used with three case studies of crowdsourcing organizations. Findings illustrate how value is created for the crowdsourcing firm and the sources of value creation. Findings indicate that crowd size, loyalty and calibration of management/crowd controls are important factors in crowdsourcing value creation. Due to its nascence as a business phenomenon, it may be too early in the cycle to make fully informed predictions against some established value creation theories. We articulate the contribution in terms of the degree to which sources of value in crowdsourcing are embedded (or not) in existing strategic management value creation frameworks.