Grasping the business value of online communities

Abstract

Purpose The purpose of this paper is to investigate the definitions, dimensions, and classifications of online communities together with their potential to produce value for business. Those value options are then discussed in the context of empirical vignettes showing examples of business models focussed on one of the two potential benefits coming from online communities – clear financial gains and intangible long-run returns. Design/methodology/approach This paper uses systematic literature review method. In total, 67 academic paper in the area of business and management were chosen for the analysis. Findings The literature review shows multitude of online communities definitions and classifications, but hardly any comprehensive attempt to map the phenomena in full. This paper is looking into recognising potential revenue streams from online businesses and other non-financial benefits that can be combined to create strong and sustainable value proposition. Originality/value Drawing on the literature reviewed a novel categorisation of the commercial opportunities offered by the online communities is presented. These opportunities are discussed in a context of business model design.

Online brand communities’ contribution to digital business models

“… Digital marketing has more and more influence on long-term value creation in a company Joshi and Hanssens (2010). Online communities can offer tangible and intangible values to the business Iskoujina et al (2017). Tangible benefits are primarily financial and are related to the sales of products and services.…”

“…Tangible benefits are primarily financial and are related to the sales of products and services. Intangible benefits include those such as positive word-of-mouth, creation of more effective market segments, increasing website traffic, providing better product support and service delivery Porter (2004), Spaulding (2010) or sustaining stakeholder relationships by building trust and in other ways, including increasing brand awareness and commitment, and adding value by sharing the company’s content Macaulay et al (2007). A limited number of studies have focused on commercial opportunities that online communities provide and the ways by which to integrate these opportunities into a coherent business model Iskoujina et al (2017). Consumer identity and brand identification affect brand value co-creation Skålén et al (2015). When consumers interact with brands they co-create brand production: brand identity, reputation and generally support their offer Black and Veloutsou (2017). The key challenge for social media managers today is transforming consumer-community interactions into relations remunerative for the company Coelho et al (2018).…”

“…Online communities can offer tangible and intangible values to the business Iskoujina et al (2017). Tangible benefits are primarily financial and are related to the sales of products and services.…”

“…As a result, these two sources offer different benefits. As regards firm-hosted communities, Iskoujina et al (2017) pointed out that online communities can offer tangible and intangible values to the business. The first ones are primarily financial and relate to the sales of products and services.…”

“…Iskoujina et al (2017) stressed that a limited number of studies had focused on the commercial opportunities that online communities provide and the ways by which to integrate them into a coherent business model. According to Haggège et al (2017), coherent business model performance depends on a carefully crafted understanding of what a company offers to its customers and how it engages in customer relationships.…”