High-skilled freelance platforms: The impact of trust building mechanisms on attracting top freelance software professionals

of master's thesis Author: Jaakko Taskinen Title of thesis: High-skilled freelance platforms: The impact of trust building mechanisms on attracting top freelance software professionals Master’s programme: Information Networks Thesis supervisor: Professor Robin Gustafsson Major or Minor/Code: SCI3047 Thesis advisor: Mikko Viikari M.Sc. (Tech.) Date: 4.9. 2018 Number of pages: 84 (+ 2) Language: English Abstract: Freelance economy is growing and platforms intermediating freelance workforce are increasingly utilized in organizations. The market is booming especially in high-skilled services, such as in software development and design, which enable talented freelance software professionals to charge higher prices than they would earn in traditional employment. Therefore, increasing number of highly skilled individuals work as freelancers either independently or through different platforms. Moreover, freelancing provides e.g. better work/life balance, flexibility and autonomy. Freelance platforms are approached due to their ability to provide enhanced matchmaking and build trust between freelancers and companies which is in general, difficult for individual freelancers to do on their own. However, current research has mainly focused on low-skilled freelancing and large online labor platforms that intermediate relatively cheap remotely performed high-skilled freelance work. Additionally, the crucial role of trust building on freelance platforms is lacking comprehensive academic research. Freelance economy is growing and platforms intermediating freelance workforce are increasingly utilized in organizations. The market is booming especially in high-skilled services, such as in software development and design, which enable talented freelance software professionals to charge higher prices than they would earn in traditional employment. Therefore, increasing number of highly skilled individuals work as freelancers either independently or through different platforms. Moreover, freelancing provides e.g. better work/life balance, flexibility and autonomy. Freelance platforms are approached due to their ability to provide enhanced matchmaking and build trust between freelancers and companies which is in general, difficult for individual freelancers to do on their own. However, current research has mainly focused on low-skilled freelancing and large online labor platforms that intermediate relatively cheap remotely performed high-skilled freelance work. Additionally, the crucial role of trust building on freelance platforms is lacking comprehensive academic research. This thesis approaches the identified research gap by focusing on providing better understanding of current trends in high-skilled freelance markets and the strategical significance of trust building mechanisms and factors on high-skilled freelance platforms focusing on the top talent. The literature review of this study explores recent research and business literature about freelance economy, highskilled freelance platforms and trust building on them, whereas the empirical part aims to provide comprehensive overview of trust building mechanisms on high-skilled freelance platforms and factors that drive companies and top freelance software professionals to use platforms. This qualitative case study is conducted by interviewing 6 case companies and 9 high-skilled freelance software professionals. The empirical data is analyzed following the thematic analysis method introduced by Braun and Clarke (2006). The findings of this thesis indicate that platforms implementing the characteristics of tech talent agencies are most likely to attract top freelance software professionals to join the platform. Additionally, this thesis provides a precise categorization of high-skilled freelance platforms and identifies the key trust building mechanisms and factors as well as their interrelations on high-skilled freelance platforms. Finally, a process framework for trust building on high-skilled freelance platforms is presented. The framework provides a new approach for viewing trust building and understanding the interrelations between each trust building mechanisms and factors.