Avatar-Based Innovation: Consequences of the Virtual Co-Creation Experience

Virtual worlds, such as the prominent Second Life (SL), offer unprecedented opportunities for companies to tap the innovative potential of consumers and consumer communities. Despite the potential, the studied corporate open innovation initiatives fail to attract sustained engagement among co-creating participants. The underdeveloped state of these islands in terms of innovation tasks and the lack of knowledge about how to attract innovative avatars raise key concerns about the nature of the experience avatars have on corporate sites. In a quantitative study we examine the importance of the experience in encouraging active participation in the innovation tasks. When participants experience an inspiring, intrinsically motivating, involving and fun co-creation experience, they participate more intensely. Prior research on virtual new product development is extended to the virtual world context and insights of the virtual co-creation experience serve as guidelines for the conception of avatar-based innovation initiatives.