Abstract

How does co-creation create value for the firm and consumers, and how can firms manage co-creation communities more effectively? This article utilizes interview and online data collected from two firm-managed co-creation communities with differing span, trajectory, and success to understand how value is created for the firm and the consumers. We first establish four types of engagement styles based on how participants differ in their skill and community orientations. Then we describe how each group derives value from their co-creation activities and how these practices benefit the firm. Finally, we suggest guidelines to effectively manage these communities and address member needs and motives so that the firm can maximize value for all community stakeholders. Our work also provides insights on why some co-creation projects thrive and others do not.