A Second Life for organizations?: managing in the new, virtual world

Purpose – The purpose of this paper is to provide an overview of the fast‐growing virtual world, focusing on the appeal of these environments for the “digital native” generation and the growth of Second Life . Design/methodology/approach – The paper examines the latest research on virtual worlds and Second Life , examining the corporate presence “in‐world,” as well as the economic, technical, legal, ethical, and security issues involved for companies doing business in the virtual world. Findings – The paper shows that Second Life and virtual worlds hold great opportunities, along with significant downsides, for companies. Research limitations/implications – The research is limited by the very fact that this is a fast‐developing, fast‐changing area, constantly generating both new opportunities and new issues/challenges. Practical implications – With projections that 80 percent of all internet users will be involved in virtual worlds by 2011, it is important that executives and academicians be knowledgeable about these 3D internet environments. Originality/value – The paper traces the development of virtual worlds in the larger context of the growth of online gaming as a form of entertainment and interaction. It takes an objective look at the benefits and pitfalls for organizations looking to engage in Second Life and other virtual worlds.