The drivers of career success of the job-hopping professional in the new networked economy : The challenges of being an entrepreneur and an employee

Abstract

In Western economies the number of independent professionals (a.k.a. freelancers) is on the rise. The independent professional is a relatively new phenomenon that does not fit the traditional industrial era distinction between entrepreneurs and employees. In some aspects these independent professionals resemble entrepreneurs as they constantly look for new clients and new products to bring to the market. In other aspects they are similar to employees. The thesis looks into the three main questions: 1) why the number of freelancers is growing, 2) what the drivers are of freelance career success, and 3) how the growth of freelancing impacts traditional organizations. The thesis argues that the growth of freelancing is irreversible attached to the growth in the knowledge sector and is caused by technology developments that have given more power to the individual and decreased transaction costs. The study defines freelance career success both in monetary terms as well as in satisfaction terms. It shows that monetary success is largely determined by market factors (e.g. supply and demand, monopoly power, et cetera), human capital, and social capital. Personality, business strategy and motivation are less important for monetary success. For career satisfaction, it is almost the other way round; personality, business strategy and social capital are at the heart of freelance career satisfaction. Human capital, market factors and motivation are not so important for freelance career satisfaction. Finally the thesis shows that freelance growth can be an asset for existing organizations when these organizations are actively using the extra creativity and flexibility that freelancers bring. But the growth in freelance markets also poses a threat to knowledge organizations. Knowledge organizations have to adapt their strategy to make sure that they bring something to their clients that freelance markets have difficulty to offer (e.g. quality guarantees).