Crowdsourcing: What is it and how does it create value? An exploratory study

This study seeks to examine the phenomenon and value creation potential of crowdsourcing in the light of recent strategic management literature. A theory building approach is used with seven case studies of crowdsourcing firms. Findings illustrate the phenomenon of crowdsourcing and how value is created. Findings indicate that three dimension are important. The first dimension is that businesses entirely based on crowdsourcing are new, unique and disruptive. The second dimension is that crowdsourcing businesses must attract clients and large crowds who willingly participate anytime and anywhere. The third dimension is crowdsourcing creates value for the firm providing tangible value benefits for clients and crowd. Crowdsourcing is conceived as an activity system with business model design elements. 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 and how it creates value.