Organizational Design

The Metaverse Flywheel: Creating Value across Physical and Virtual Worlds

Paavo Ritala, Mika Ruokonen, and Angelos Kostis


Abstract
This study presents a metaverse flywheel model providing insights into how the emerging layered modular architecture of the metaverse can enable new types of value-creation opportunities for organizations. Based on interviews with early metaverse adopters and innovators, this article identifies three key metaverse affordances: prospection of future conditions, persistence of editable and evolving virtual spaces, and integration between virtual and physical worlds. The findings enhance the nascent metaverse literature by highlighting that new organizing logics are required for metaverse-specific value creation, which goes beyond the previous generation’s isolated 3D models and other interfaces.

California Management Review

Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

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