Journal of Business Management

Journal of Business Management

Freelancers in the Sharing Economy: Conceptualizing the Value Proposition in Freelancing Platforms

Document Type : Research Paper

Authors
1 MSc. Student, Department of Information Technology Management, Faculty of Social and Economic Sciences, Alzahra University, Tehran, Iran.
2 Ph. D., Department of Economics, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran.
3 Prof., Department of Financial Engineering, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, Iran.
Abstract
Objective
The growth of sharing economy processes and the emergence of freelancing platforms have challenged the traditional model of work, while the increasing popularity of freelance work has focused researchers' attention on this field. This study analyzes the concept of value proposition to investigate the factors affecting the motivation and persistence of freelancers on these platforms. In other words, this is an attempt to expand the concept of value proposition in the field of freelancing, which provides a foundation for a long-term freelancer-platform relationship.

Methodology
The present study is of an applied developmental type and is exploratory in terms of its implementation strategy. Initially, the use of a qualitative method was put on the agenda to gain a deep understanding of the existing problem and to identify the experiences of people related to the field of study. The research method is also quantitative. To extract the dimensions of value, semi-structured interviews were conducted with freelancers to gain insights into the freelancers' perceptions of the value system. Twenty-one freelancers with different work backgrounds were interviewed, and they shared their opinions on various factors that encourage them to work in the freelancing industry. Based on the interviews and existing theoretical foundations, a questionnaire was designed and distributed to different groups of freelance social networks, as well as to students from different universities in Tehran who had freelancing experience. The sample included data from 247 respondents. Finally, the research data were analyzed using partial least squares structural equation modeling (PLS-SEM).

Findings
Autonomy value, developmental value, hedonic value, economic value, and social value significantly contribute to freelancers' proposed value and influence their decisions to choose and remain on a particular platform. The beta coefficient values indicate that independence value (0. 301), economic value (0. 305), and growth value (0. 300) are strong dimensions of the freelancer's value proposition. Social value (0. 243) and hedonic value (0. 238) also significantly predict the freelancer's proposed value, but the beta coefficients are relatively low. Identifying the dimensions of value and their development is a way to expand the knowledge in this study.

Conclusion
The results indicate that economic value is an important dimension of the freelancer's value proposition. The platform can play an important role in increasing economic value because it should provide economic incentives and charge lower fees. Apart from charging lower commission fees, the platform should also focus on the ease of payment to freelancers. Freelancers also complain that the banking system in third-world countries is not efficient, so companies should consider regional restrictions in cross-border projects. Developmental value is also a key dimension. Almost all freelancing platforms offer basic training and video tutorials on platform layout and functionality, but no advanced professional training on skills. Platforms must introduce professional certifications and announce the certified freelancer on their profile. On the one hand, this helps freelancers develop their skills, and on the other hand, it helps clients find the right person for the job and leads to the improvement of service quality. The value of autonomy is the inherent advantage of freelancing. Platforms can increase this value by building trust among freelancers. Social value is related to reputation and network. Regarding the value of pleasure, the layout of the freelancing platform can play an important role in increasing this value. The layout should be attractive and have a good combination of colors and writing styles. In general, the results of this research can help the aforementioned platforms and policymakers better understand the needs and expectations of freelancers and formulate more effective strategies to attract and retain them.
Keywords
Subjects

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