The Operational Performance of Virtual Communities - Towards a Successful Business Model?

Abstract

Virtual communities are a prominent business model of the World Wide Web, as they can combine reach and selectivity based on user needs. Not only do virtual communities fill a strategic niche – they also tend to have a stronger operational performance than other B2C business models in their early stage of development, according to a confidential sample of Internet-based companies participating in the e-performance line of McKinsey & Company. In spite of these encouraging results, virtual communities must continue to increase their performance, in particular cost-effectiveness, steadily along their life cycle in order to ensure strong value creation for the long term. ABSTRACT FROM AUTHOR Copyright of Electronic Markets is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts)