The challenges of launching a crowd based platform : A single case study of a Swedish service provider

Abstract: Using the concept of open innovation companies have started to look beyond their own borders using the crowd as a source for labour, knowledge and innovation. During the last few years the phenomena of crowdsourcing and crowdfunding have become increasingly popular as sources of competitive advantage through the crowd. While several studies have examined crowd based platforms focusing on the users, little attention has been brought to the companies starting these crowd based services. This study addresses this gap in existing knowledge related to crowd based platforms through a qualitative case study examining a Swedish start-up. We demonstrate challenges related to networking, critical mass and quality in the context of launching a crowd based platform.