Value creation potential of Web 2.0 for SME : Insights and lessons learnt from a european producer of consumer electronics

Web 2.0 as a contemporary phenomenon receives considerable attention by IS scholars due to its perceived transformational impact on businesses. This paper critically elaborates on the value creation potential of Web 2.0 for small and medium enterprises (SME). By conducting an inductive study we reveal that SMEs can effectively use Web 2.0 as a means to support customer acquisition, alleviate resource limitations and to maintain customer enthusiasm associated with the customer purchasing process. In case that a high customer convenience is required which is based on the involvement of different parties or on personal service support, there is hardly any Web 2.0 value creation potential. This research contributes to the domain of business modeling by assessing the notion of value in a Web 2.0 setting. It also contributes to IS research on Web 2.0 adoption.