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Information Exchange in User Communities: A Study of Individual Level Determinants and Firm Level Effects in the U.S. Snowsports Industry Public Dissertation Defense by Thomas Langenberg August 31, 2007
Content ,[object Object],[object Object],[object Object]
Where do I come from? Education Professional Background Extracurricular Activities ,[object Object],[object Object],[object Object],[object Object],[object Object],Personal Background ,[object Object],[object Object],myBACKGROUND
My Dissertation Journey: “Catching and Riding the Next Wave” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2004 2005 2006 2007 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],myBACKGROUND
Content ,[object Object],[object Object],[object Object]
Let me introduce to you Bob, the R&D manager, and Frank, an engineer. Both are enthusiastic about skiing and work for Rossignol Skis on a technology project. Bob, R&D Manager Frank, Engineer INTRODUCTION Bob & Frank, a social network Bob and Frank have been assigned to work together on a new powder ski project. They work in a team of five (1 Bob and many Franks). signals information flow in one direction only Information Exchange in Social Networks The Franks and Bob actively exchange information about potential aspects of this project. signals information flow in two directions
It is interesting to look at Bob and Frank’s social network, because the academic literature shows increasing interest in the comparison of structural network configurations and their effects on information exchange (IE) INTRODUCTION The network could look like this .. Structural Configuration Effects on IE Frank is dependent on Bob’s input Bob can actively control what Frank knows information exchange it could also look like that vs Both Bob and Frank are sharing the same information Frank is totally independent from Frank
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Content
Over the last years, Rossignol observed that changing the set-up of its engineering teams also alters its ability to innovate. myRESEARCH INTRODUCTION different set-ups of engineering teams More research is required to understand how a firm’s ability to transform ideas into innovations depends on the structure of its intrafirm social networks Research Gap Research Question:  How does the set-up of Bob and Frank’s engineering team influence Rossignol’s ability to innovate? ,[object Object],[object Object],Literature new idea input Rossignol innovative product no  product output
Based on an intensive literature review, I find that Rossignol’s ability to innovate is among other things a result of Bob’s position in the engineering team’s set-up myRESEARCH FINDINGS Set-ups of Engineering Team Bob, R&D Manager Frank, Engineer Bob’s position :  decentral Network Structure :  sparse Ability to Innovate :  low Explanation :  Bob has no control over or access to  information and communication flows. no product Effect on Rossignol’s Innovativeness Bob’s position :  central Network Structure :  dense Ability to Innovate :  high Explanation :  Bob has access to information and  communication flows. Also, team  members are always informed  about what is going on. innovative product
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Content
U.S. alpine skiing is an interesting subfield of U.S. Snowsports due to its contradicting developments: decreasing sales & participation and increasing firm creation activities source: leisuretrends.com source: SIA Report 2005 myRESEARCH INTRODUCTION Participation & Equipment Sales are Decreasing Entrepreneurial Wave in U.S. Alpine Skiing 30% of the currently competing ski firms in U.S. alpine skiing have been founded during the last 6 years. All of them are in the freestyle skiing segment.
For companies operating in U.S. alpine skiing, there are basically two technical dimension along which they can differentiate themselves from competitors (2) Differentiation along core design & construction principles source: www.skibuilders.com (1) Differentiation along ski geometry/design parameters source: www.fischer-ski.com myRESEARCH INTRODUCTION Ski length   Running length Camber   Tip and tail width  Waist width
I collected data through qualitative methods to arrive at a better understanding of how the industry works, especially with respect to freestyle skiing.  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Better understanding of how the industry works: start-ups are challenging established firms myRESEARCH DATA COLLECTION “ These up-start companies are sick. They support the skiing sports and push the industry forward. ” Newschoolers.com community member about the freestyle skiing movement “ Our products are going back to the roots of skiing. We want to change the industry from the inside. We are not big and corporate, but our company is rider owned and rider operated. ” CEO of a freestyle ski start-up company “ These small start-up firms that are popping up all over Colorado, California, and the East Coast now are exactly what we need. They attract a new generation of skiers that might support the sport for a long period of time .” Product Manager Incumbent Ski Firm
During my interviews, I learned that newschoolers.com is a highly referred to and influential online community of freestyle ski enthusiasts Demographics of the User Community ,[object Object],[object Object],[object Object],myRESEARCH DATA COLLECTION
Content ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Bob and Frank are members of various communities, such as newschoolers.com or skibuilders.com. In all of them, they are perceived as very important. Why? myRESEARCH INTRODUCTION Creative individuals often use online communities to share ideas Research Question: Why are Bob and Frank indispensable for information exchange, while others are not?  It is not yet clear how one can identify members that are more relevant to informaiton exchange in a user community than others Research Gap
First, one reason why Bob and Frank are perceived as more important might be because they are more actively exchanging information with other members ,[object Object],[object Object],[object Object],Supporting Literature **  adopted from  Lakhani, K. R. & von Hippel, E. 2002.  How open source software works: “free” user-to-user assistance . Research Policy, 1451: 1–21, p.9 The “theory” of information exchange in user communities myRESEARCH HYPOTHESIS BUILDING Participation in information exchange Frank Rest of Community Low High Bob
Second, Bob and Frank are extremely enthusiastic about skiing and fully committed to building skis. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],myRESEARCH HYPOTHESIS BUILDING Hence, such emotional commitment can be another reason why Bob and Frank are being perceived as more important than others.
According to my analysis Frank and Bob indeed outperform most of the members with respect to participation in information exchange and emotional commitment Descriptive Statistics & Pairwise Correlation Regression Results myRESEARCH FINDINGS
A user community depends on the participation in information exchange and emotional commitment of a few selected individuals that are “most central” to the community ,[object Object],[object Object],[object Object],myRESEARCH IMPLICATIONS Implications The communication network on newschoolers.com Bob Frank
Content ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Pam & Jim, friends of Bob and Frank, have been skiing for all their lives. Just one year ago, they started to get into freestyle skiing. Research Question: What happened? Why did they change their opinion? myRESEARCH INTRODUCTION Jim Pam One Year Ago ,[object Object],[object Object],[object Object],Today Jim Pam ,[object Object],[object Object],[object Object],On the slopes they get to know Bob and Frank who invites them to join newschoolers.com Also, Jim and Pam are getting into the ski press in order to find new insights into new “tricks and moves”
The literature argues that the media are an important determinant of how a firm is perceived in the public. Little attention has been paid though to the effects of social influence. myRESEARCH HYPOTHESIS BUILDING ,[object Object],[object Object],[object Object],My Hypothesis: Besides the media,  exposure to information exchange in user communities  can also  alter an individual’s emotional response  toward a selected firm Supporting Literature Media Reporting ,[object Object],[object Object],[object Object],“ Prevailing Opinion” Social Influence ,[object Object],[object Object],[object Object],“ Prevailing Opinion”
Being active members in the newschoolers.com community strengthens Jim & Pam’s opinion about Rossignol as being not very credible in U.S. freestyle skiing Perceived Credibility of Rossignol Low Exposure to newschoolers.com High Exposure to newschoolers.com myRESEARCH Low FINDINGS Low Case 1: Low Exposure to Media < Perceived Credibility of Rossignol of Perceived Credibility of Rossignol of Explanation Jim is influenced by the “prevailing opinion” of newschoolers.com members High Exposure to Media Pam Pam Jim Jim
Actively sourcing additional information from the media helps Jim & Pam to improve their perception of Rossignol’s credibility in U.S. freestyle skiing  Exposure to Media Low Exposure to newschoolers.com High Exposure to newschoolers.com Case 2: High Exposure to Media High Low High Perceived Credibility of Rossignol > Perceived Credibility of Rossignol of Perceived Credibility of Rossignol of Explanation Jim learns in the media that Rossignol is quite active when it comes to driving freestyle skiing myRESEARCH FINDINGS Pam Jim Pam Jim
When marketing products to Jim and Pam, Rossignol needs to take advantage of both the user community (case 1) as well as the media (case 2) Exposure to Media Low Exposure to User Community High Exposure to User Community myRESEARCH IMPLICATIONS Insights ,[object Object],[object Object],[object Object],High Low High Perceived Credibility of Rossignol Case 1 Case 2 Pam Jim Pam Jim
Content ,[object Object],[object Object],[object Object]
What am I going to do next? Good question, because there are so many options and opportunities … myFUTURE (Semi) Professional Triathlete Iron Ore Mining & Steel Making Expert
…  in any case, as many of you might already know, I think I will continue to ride waves! e-governance open source software technolgical innovation online social networking Aerospace Engineering IT Consultancy & System Integration Academic Program Manager & Researcher Researcher Social Sciences Professional Triathlete technology & operations management myFUTURE http:// thomaslangenberg.com
This is the end! Thank You For Your Attention

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Public PhD Defense (31 August 2007)

  • 1. Information Exchange in User Communities: A Study of Individual Level Determinants and Firm Level Effects in the U.S. Snowsports Industry Public Dissertation Defense by Thomas Langenberg August 31, 2007
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  • 6. Let me introduce to you Bob, the R&D manager, and Frank, an engineer. Both are enthusiastic about skiing and work for Rossignol Skis on a technology project. Bob, R&D Manager Frank, Engineer INTRODUCTION Bob & Frank, a social network Bob and Frank have been assigned to work together on a new powder ski project. They work in a team of five (1 Bob and many Franks). signals information flow in one direction only Information Exchange in Social Networks The Franks and Bob actively exchange information about potential aspects of this project. signals information flow in two directions
  • 7. It is interesting to look at Bob and Frank’s social network, because the academic literature shows increasing interest in the comparison of structural network configurations and their effects on information exchange (IE) INTRODUCTION The network could look like this .. Structural Configuration Effects on IE Frank is dependent on Bob’s input Bob can actively control what Frank knows information exchange it could also look like that vs Both Bob and Frank are sharing the same information Frank is totally independent from Frank
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  • 10. Based on an intensive literature review, I find that Rossignol’s ability to innovate is among other things a result of Bob’s position in the engineering team’s set-up myRESEARCH FINDINGS Set-ups of Engineering Team Bob, R&D Manager Frank, Engineer Bob’s position : decentral Network Structure : sparse Ability to Innovate : low Explanation : Bob has no control over or access to information and communication flows. no product Effect on Rossignol’s Innovativeness Bob’s position : central Network Structure : dense Ability to Innovate : high Explanation : Bob has access to information and communication flows. Also, team members are always informed about what is going on. innovative product
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  • 12. U.S. alpine skiing is an interesting subfield of U.S. Snowsports due to its contradicting developments: decreasing sales & participation and increasing firm creation activities source: leisuretrends.com source: SIA Report 2005 myRESEARCH INTRODUCTION Participation & Equipment Sales are Decreasing Entrepreneurial Wave in U.S. Alpine Skiing 30% of the currently competing ski firms in U.S. alpine skiing have been founded during the last 6 years. All of them are in the freestyle skiing segment.
  • 13. For companies operating in U.S. alpine skiing, there are basically two technical dimension along which they can differentiate themselves from competitors (2) Differentiation along core design & construction principles source: www.skibuilders.com (1) Differentiation along ski geometry/design parameters source: www.fischer-ski.com myRESEARCH INTRODUCTION Ski length Running length Camber Tip and tail width Waist width
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  • 17. Bob and Frank are members of various communities, such as newschoolers.com or skibuilders.com. In all of them, they are perceived as very important. Why? myRESEARCH INTRODUCTION Creative individuals often use online communities to share ideas Research Question: Why are Bob and Frank indispensable for information exchange, while others are not? It is not yet clear how one can identify members that are more relevant to informaiton exchange in a user community than others Research Gap
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  • 20. According to my analysis Frank and Bob indeed outperform most of the members with respect to participation in information exchange and emotional commitment Descriptive Statistics & Pairwise Correlation Regression Results myRESEARCH FINDINGS
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  • 25. Being active members in the newschoolers.com community strengthens Jim & Pam’s opinion about Rossignol as being not very credible in U.S. freestyle skiing Perceived Credibility of Rossignol Low Exposure to newschoolers.com High Exposure to newschoolers.com myRESEARCH Low FINDINGS Low Case 1: Low Exposure to Media < Perceived Credibility of Rossignol of Perceived Credibility of Rossignol of Explanation Jim is influenced by the “prevailing opinion” of newschoolers.com members High Exposure to Media Pam Pam Jim Jim
  • 26. Actively sourcing additional information from the media helps Jim & Pam to improve their perception of Rossignol’s credibility in U.S. freestyle skiing Exposure to Media Low Exposure to newschoolers.com High Exposure to newschoolers.com Case 2: High Exposure to Media High Low High Perceived Credibility of Rossignol > Perceived Credibility of Rossignol of Perceived Credibility of Rossignol of Explanation Jim learns in the media that Rossignol is quite active when it comes to driving freestyle skiing myRESEARCH FINDINGS Pam Jim Pam Jim
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  • 29. What am I going to do next? Good question, because there are so many options and opportunities … myFUTURE (Semi) Professional Triathlete Iron Ore Mining & Steel Making Expert
  • 30. … in any case, as many of you might already know, I think I will continue to ride waves! e-governance open source software technolgical innovation online social networking Aerospace Engineering IT Consultancy & System Integration Academic Program Manager & Researcher Researcher Social Sciences Professional Triathlete technology & operations management myFUTURE http:// thomaslangenberg.com
  • 31. This is the end! Thank You For Your Attention