Business ecosystem perspective on value co-creation in the Web 2.0 era: implications for entrepreneurial opportunities

Firms such as Facebook, Google and MySpace are rapidly emerging as leaders of what is known as the 'Web 2.0' era of commerce. The common distinguishing characteristic of these firms is the primary basis of the value they provide, namely a forum for iterative collaboration and interactive content creation and modification for users. Their strategies underlie an important, currently unfolding phenomenon – that of 'value co-creation' and a transformation in the way value is created and experienced by producers and consumers. It is the intent of this article to analyse this phenomenon and its implications for entrepreneurial opportunities. Drawing from an interdisciplinary body of literature in networked organisations, Web 2.0 technologies and innovation, we identify the trends driving this transformation, the process by which it is accomplished and its outcomes. Our analysis lays out a theoretically grounded explanation for the occurrence of value co-creation and consequent opportunities for entrepreneurship, and provides direction for future research.