User Innovation and Entrepreneurship in the Virtual Worlds

44 Pages Posted: 6 Nov 2014 Last revised: 16 May 2016

See all articles by Yanto Chandra

Yanto Chandra

City University of Hong Kong

Mark A.A.M. Leenders

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Date Written: November 6, 2014

Abstract

While prior research have investigated factors, processes and pathways traversed in user innovation and user entrepreneurship within the real world, there is a scant attention on user innovation and user entrepreneurship that take place within the virtual world. We report on an exploratory study of a select group of user innovators-entrepreneurs in Second Life, using virtual participant observation and in-depth interviews. Results suggest that 1) the paths traversed by user innovators and user entrepreneurs in the virtual life resemble those in the real life reported in the literature. Interestingly, the study suggests that 2) the Second Life as a virtual world often breeds opportunities leading to entrepreneurial acts in the ‘real’ world as well as further opportunities in the Second Life world. The study also suggests that 3) the virtual world as a new technological platform such as Second Life will generate a range of opportunities that are not obvious to ‘non-virtual’ user innovators/entrepreneurs and that 4) any given user innovator/entrepreneur will discover opportunities related to his or her prior knowledge but the range and quality of innovation generated will depend on the nature of networks and weak ties. Furthermore, 5) the study shows that virtual infrastructure in Second Life simultaneously facilitate and deter user innovation and entrepreneurship, which will in turn spur more innovative/entrepreneurial acts as residents attempt to solve the technical problems. This study extends the user innovation and entrepreneurship theory, Austrian economics theory of entrepreneurial discovery and creative collective theory into the virtual context. We conclude with implications of these findings for theory and practice of user innovation and entrepreneurship.

Keywords: user innovation, user entrepreneurship, Second Life, virtual life.

JEL Classification: M13

Suggested Citation

Chandra, Yanto and Leenders, Mark A.A.M., User Innovation and Entrepreneurship in the Virtual Worlds (November 6, 2014). Available at SSRN: https://ssrn.com/abstract=2519940 or http://dx.doi.org/10.2139/ssrn.2519940

Yanto Chandra (Contact Author)

City University of Hong Kong ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Mark A.A.M. Leenders

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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