Paradoxes of Open Entrepreneurship
The concept of Open Entrepreneurship contains several paradoxes which can become relevant through this special form of organization. First, people collaborating in networks are consumers and producers at the same time. Alvin Toffler’s approach of prosumerism leads in a functional view in the same direction for the non-monetary economy. Especially for the interactive creation of wealth understood as the informational exchange between manufacturer and user the problem emerges that you may have to start talking to yourself.
Second, Open Entrepreneurs in networks can be seen as competitors and cooperators at the same time. Cooperation and competition are reciprocal, being two sides of the same medal reflecting each other. For instance, if you consider entrepreneurs trading with the same goods over an intermediary platform, they have the same interest in regard to a well working cooperation towards the platform, but stay in competition to each another.
Third, there exists something like an informational dilemma. Large-scale collaboration in the mentioned form seems to have become only possible by the technological development of the internet and the reduction of transaction costs for this collaboration. At the same time the internet reduces asymmetry of information and therefore the customer knows better about the market price of a certain good or service that is tradable worldwide over the internet. Therefore when switching a potential innovation generated in networks onto the worldwide market of the internet, the margins for profits could stay very low. Through this, innovation could be destroyed by the same medium that supported its creation.
























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