Strategic Approaches Toward Sustainability

1
(No Transcript)
2
Strategic Approaches Toward Sustainability
Steve Currall Paul Dholakia Jones Graduate
School of Management, Rice University cnx.rice.e
du
3
Interesting Research Questions

• Question 1 To study consumer settings where
  there are significant consumer-to-consumer
  interactions
• Question 2 What are relevant business models for
  open source projects such as Connexions?
• Goal Apply these research findings to the case
  of Connexions, and share learning with other Open
  Source and collaborative community projects
  funded by the Hewlett foundation and others

4
Two Strategic Approaches toward Connexions
Sustainability

• Sustainability defined as adequate revenue to
  support the operations of Connexions on an
  ongoing basis over a long time-horizon
• Approach 1 Business Model Approach
• Study relevant business (and not-for-profit)
  revenue models and determine which models will
  apply to Connexions
• Approach 2 Stakeholder Value Approach
• Understand the value of Connexions to various
  participants, and seek ways to increase it

5
Approach 1 Relevant Business Models

• For Profit Models
• Red Hat Model
• Premium Service
• Model

• Not for Profit Models
• Standards Body Model
• Center Model
• Consortium Model

• Why this strategic approach does not work by
  itself

6
Approach 2 Stakeholders Value Approach

• Goal Understand Value of Connexions
• Sustainability Value to users
• Bring to bear existing research, and develop
  model of Connexions Value to users

Instructors
Students
Authors
7
Model of Participation in Virtual Communities
Figure Notes Indicates paths that
were found to be significant in tests of
mediation aUnstandardized coefficient bStandard
error p lt .001, p lt .01, p lt .05
Parameter estimates for final structural
model Unstandardized coefficients and standard
errors in parentheses Insignificant paths are
omitted for ease of exposition
(Dholakia, Bagozzi and Klein, 2004, forthcoming
in IJRM)
8
Relevant Findings from Virtual Community Study

• Many consumers start participating in virtual
  communities for selfish reasons --- purposive,
  self-enhancement, entertainment value
• Many Connexions users will likely have selfish
  motives for participating
• CONTENT may be an important driver to entice
  initial usage

9
Participation in German Car Clubs
plt.05 plt.01 plt.001 Unstandardiz
ed Coefficients, standard errors in parentheses,
two-sided significance tests
(Algesheimer, Dholakia and Hermann, 2004)
10
Harley Riding Group
Findings for structural equation model Harley
Riding Group (N154). (Parameter estimates
presented for structural model only for
simplicity.)
plt.05 plt.01 plt.001
(Bagozzi and Dholakia, 2004)
11
Relevant Findings from the Car Club and the
Harley Studies

• A significant value and motivation for ongoing
  participation and engagement in such groups is
  the opportunity for social interactions
• Social enhancement maintaining interpersonal
  interconnectivity
• Social identity, group norms, subjective norms
• COMMUNITY may be an important driver to entice
  ongoing participation

12
Connexions Sustainability Model
13
Research Opportunities

• How would this value model be different for
  Connexions (than the studies I mentioned)?
• Multiple models for different participant groups
• Interactions between participant groups
• Outcomes Participation, knowledge, social
  benefits, self-enhancement?
• How can these outcomes be transformed into
  revenue streams?
• Does the Connexions model generalize to other
  projects funded by the Hewlett foundation?

14
Next Steps Toward Sustainability

• Conduct extensive research to better understand
  bases of value for the Connexions constituent
• Explore collaboration opportunities with other
  relevant projects founded by the Hewlett
  foundation to study related issues and apply our
  learning
• Track content and community growth as well as
  other drivers of value

15
(No Transcript)