Using the Crowd for Business Model Innovation: The Case of Digikala

Abstract

On November 15, 2015, Digikala, one of the largest online stores in the Middle East, launched its first‐ever crowdsourcing contest called ‘A glance at tomorrow’. What distinguishes this contest from common crowd‐based initiatives is that it was aimed at Business Model Innovation (BMI) rather than product and process innovation. Although using the crowd has proven to be an effective way for firms to boost their product and process innovation, its use for BMI is challenging. Based on real large‐scale data from the Digikala’s crowdsourcing contest, this research focuses on the application of crowd‐powered solutions in BMI, which has rarely been investigated previously. Our exploratory case study indicates that the crowd could contribute to the BMI process. Our findings point to a new form of ‘division of innovation labor’ in BMI. Contribution of the crowd in BMI is more likely to be relevant to Value Proposition and Value Delivery, while it might be less relevant to Value Capture and Value Creation. The results also support the notion that crowd‐contributor characteristics affect the quality of proposals for BMI. We argue that this line of research could help companies design and implement customized crowd‐based initiatives to better support their BMI process.