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What Is Crowdsourcing for Innovation?

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Unleashing the Crowd

Abstract

This book is about how crowds can help to innovatively solve wicked problems: problems that are vexing to companies as well as problems that have an existential impact on societies. In this chapter, we first explain what we mean by a wicked problem and what we mean by a crowd, then discuss what is meant by crowdsourcing for innovation. Then we discuss the traditional model of crowdsourcing: the Idea-Sharing process. We discuss the basic theoretical assumptions of this process and how it historically evolved. We describe the evidence for and against this process indicating why we believe this process is “mindcuffing” the crowds from offering innovative solutions to wicked problems. We introduce our competing process—collective production—which serves as the basis for the remainder of the book.

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Notes

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  2. 2.

    Simon H. A. 1973. The structure of ill-structured problems. Artificial Intelligence, 4 (3–4): 181–201.

  3. 3.

    Ibid.

  4. 4.

    George, G., Howard-Grenville, J., Joshi, A., & Tihanyi, L.(2016). Understanding and tackling societal grand challenges through management research. Academy of Management Journal, 59(6): 1880–1895; George, G. (2014). Rethinking management scholarship. Academy of Management Journal, 57(1): 1–6.

  5. 5.

    Hautz, J., Seidl, D., & Whittington, R. (2017). Open strategy: Dimensions, dilemmas, dynamics. Long Range Planning, 50(3), 298–309; Whittington, R. (2019) Opening Strategy: Professional Strategists and Practice Change, 1960 to Today, Oxford Press; D. Seidl, R. Whittington, G. Von Krogh (2018) Cambridge Handbook of Open Strategy.

  6. 6.

    Camillus, J. C. (2008). Strategy as a wicked problem. Harvard business review, 86(5), 98.

  7. 7.

    Esteles-Arolas, E & Gonzalex-Ladron-de-Guevara, F. (2012). Towards an integrated crowdsourcing definition. J Inf Sci, 38, 189–200; West, J. & Sims, J. (2018) How firms leverage crowds and communities for open innovation. In Tucci, C. L., Afuah, A., & Viscusi, G. (Ed) Creating and Capturing Value through Crowdsourcing. Oxford University Press.

  8. 8.

    https://www.popsci.com/scitech/article/2007-05/digg-mutiny%E2%80%94censored-users-get-their-way.

  9. 9.

    Wilson, M., Robson, K., & Botha, E. (2017). Crowdsourcing in a time of empowered stakeholders: lessons from crowdsourcing campaigns. Business Horizons, 60(2), 247–253.

  10. 10.

    Adamczyk, S., Bullinger, A. C., Möslein, K. M., (2012). Innovation contests: a review, classification and outlook. Creat. Innovat. Manag. 21(4), 335–360; Mack, T., & Landau, C. (2015). Winners, losers, and deniers: Self-selection in crowd innovation contests and the roles of motivation, creativity, and skills. Journal of Engineering and Technology Management, 37, 52–64.

  11. 11.

    Von Hippel, E. (2005) Democratizing Innovation. MIT Press; von Hippel, E. (1986) Lead users: A source of novel product concepts. Management Science, 32(7), 791–805; Von Hippel, E. (2016) Free Innovation, MIT Press.

  12. 12.

    Crockett, Z. (2017) How a janitor at Frito-Lay invented Flamin’ Hot Cheetos: Richard Montañez went from cleaning toilets to being one of the most respected execs in the food industry. The Hustle, November 29.

  13. 13.

    Others have proposed similar definitions: Afuah, A. (2018). Crowdsourcing: A Primer and Research Framework. In Creating and capturing value through crowdsourcing. In Tucci, C. L., Afuah, A., & Viscusi, G. (Eds.), Creating and Capturing Value through Crowdsourcing Oxford University Press, pp. 39–57; Afuah, A., & Tucci, C. L. (2012). Crowdsourcing as a solution to distant search. Academy of Management Review, 37(3): 355–375; Dahlander, L. & Piezunka, H. 2014. Open to suggestions: How organizations elicit suggestions through proactive and reactive attention. Research Policy, 43(5), 812–827; Ghezzi, A., Gabelloni, D., Martini, A., & Natalicchio, A. (2018). Crowdsourcing: a review and suggestions for future research. International Journal of Management Reviews, 20(2): 343–363. Felin, T., Lakhani, K. R., & Tushman, M. L. (2017). Firms, crowds, and innovation. Strategic organization, 15(2), 119–140. Howe, J. (2006). The Rise of Crowdsourcing. Wired magazine, 14(6): 1–4.; Viscusi, G. & Tucci, C.L. 2018. Three’s a Crowd. In Tucci, C. L., Afuah, A., & Viscusi, G. (Eds.) Creating and capturing value through crowdsourcing, Oxford University Press, pp. 39–57.

  14. 14.

    West, J & Sims, J. (2018). How firms leverage crowds and communities for open innovation. In C. Tucci, A. Afuah and G. Viscusi (Ed) Creating and Capturing Value through Crowdsourcing. Oxford.

  15. 15.

    Boudreau, K. J., & Lakhani, K.R. 2009. How to manage outside innovation. MIT Sloan Management Review, 50(4), 69–76; Franke, N. & Shah, S. 2003. How communities support innovative activities: an exploration of assistance and sharing among end-users. Research Policy 32, 157–178; Fuller, J., Jawecki, G., & Muhlbacher, H. 2007. Innovation creation by online basketball communities. Journal of Business Research. 60, pp. 60–71; Fuller, J., Hutter, K., Hautz, J., and Matzler, K. 2014. User roles and contributions in innovation-contest communities. Journal of Management Information Systems, 31(1), 273–307.

  16. 16.

    Amabile, T. M. 1996. Creativity in Context: Update to the Social Psychology of Creativity. Westview Press, Boulder, CO; Amabile, T. M., & Pratt, M. G. 2016. The dynamic componential model of creativity and innovation in organizations: Making progress, making meaning. Research in Org Behavior 36,157–183; Mack, T., and Landau, C. ibid.

  17. 17.

    Chesbrough, H. 2003. Open Innovation: The New Imperative for Creating and Profiting from Technology. Boston, MA: Harvard Business School Press; Chesbrough, H. 2006. “Open Innovation: A New Paradigm for Understanding Industrial Innovation.” In H. Chesbrough, W. Vanhaverbeke, and J. West (ed) Open Innovation: Researching a New Paradigm, 1–12. Oxford: Oxford University Press; Chesbrough, H. 2011. Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era. San Francisco, CA: Jossey-Bass; Chesbrough, H., and M. Bogers. 2014. “Explicating Open Innovation: Clarifying an Emerging Paradigm for Understanding Innovation.” In H. Chesbrough, W. Vanhaverbeke, and J. West, (ed) New Frontiers in Open Innovation, 3–28. Oxford: Oxford University Press; Chesbrough, H., S. Kim, and A. Agogino. 2014. “Chez Panisse: Building an Open Innovation Ecosystem.” California Management Review 56 (4): 144–171. Chesbrough, H., and M. M. Appleyard. 2007. “Open Innovation and Strategy.” California Management Review 50 (1): 57–76. Chesbrough, H., and R. S. Rosenbloom. 2002. “The Role of the Business Model in Capturing Value from Innovation: Evidence from Xerox Corporation’s Technology Spin-off Companies.” Industrial and Corporate Change 11 (3): 529–555; West, J. & Sims, J. (2018). How firms leverage crowds and communities for open innovation. In C. Tucci, A. Afuah & G. Viscusi (Ed) Creating and Capturing Value Through Crowdsourcing. Oxford Press.

  18. 18.

    Brabham, D. C. (2013). Crowdsourcing. MIT Press; Zhao, Y & Zhu, Q. 2014. Evaluation on crowdsourcing research: Current status and future direction. Information Systems Frontier, 16, 417–434; Clark, B. Y., Zingale, N., Logan, J., & Brudney, J. (2019). A framework for using crowdsourcing in government. In Social Entrepreneurship: Concepts, Methodologies, Tools, and Applications (pp. 405–425). IGI Global; Mechant, P., Stevens, I., Evens, T. & Verdegem, P. (2012) E-deliberation 2.0 for smart cities: A critical assessment of two “idea generation” cases. International Journal of Electronic Governance, 5(1), 82–98; Saebo, O., Rose, J & Flak, L. S. (2008) The shape of eParticipation: Characterizing an emerging research area. Government Information Quarterly, 25(3), 400–428; Price, V. (2009) Citizens deliberating online: theory and some evidence. In T. Davies & S. Noveck (Eds). Online Deliberation: Design, Research & Practice. University of Chicago Press; Porter, A. J., Tuertscher, P. & Huysman, M. 2019 Saving Our Oceans: Tackling Grand Challenges Through Crowdsourcing, Journal of Management.

  19. 19.

    Malone, T., Nickerson, J.V., Laubacher, R. J., Fisher, L. H., de Boer, P., Han, Y., Towne, W. B. (2017). Putting the pieces back together again: Contest webs for large-scale problem solving. CSCW, 2017.

  20. 20.

    Porter, A. J., Tuertscher, P., and Huysman, M. (2019) Saving our oceans. Tackling grand challenges through crowdsourcing. Journal of Management.

  21. 21.

    Laursen, K., Salter, A., 2006. Open for innovation: the role of openness in explaining innovation performance among UK manufacturing firms. Strategy Management. J. 27, 131–150.

  22. 22.

    Innovation contests such as those regularly hosted on the platform Innocentive.com represent the dominant form of crowd innovation contests according to Mack, T., & Landau, C. (2015). Winners, losers, and deniers: Self-selection in crowd innovation contests and the roles of motivation, creativity, and skills. Journal of Engineering and Technology Management, 37, 52–64; Terwiesch, C. & Ulrich, K. T. (2009). Innovation tournaments: Creating and selecting exceptional opportunities. Harvard Business Review; and Terwiesch, C. & Xu, Y. 2008. Innovation contests, open innovation, and multiagent problem solving. Management Science, 54(9), 1529–1543.

  23. 23.

    The following are papers describing online user communities: basketball community in Franke, N. & Shah, S. (2003). How communities support innovative activities: an exploration of assistance and sharing among end users. Research Policy 32, 157–178 and Fuller, J., Jawecki, G., & Muhlbacher, H. 2007. Innovation creation by online basketball communities. Journal of Business Research. 60, pp. 60–71; Dell’s Idea Storm in Di Gangi, P. M., Wasko, M. M., & Hooker, R. E. (2010). Getting customers’ ideas to work for you: learning from dell how to succeed with online user innovation communities. MIS Quarterly Executive, 9(4); LEGO’s communities in El Sawy, O. A., Kræmmergaard, P., Amsinck, H., & Vinther, A. L. (2016). How LEGO Built the Foundations and Enterprise Capabilities for Digital Leadership. MIS Quarterly Executive, 15(2); and a variety of lead user innovation communities in both Von Hippel, E. (2005) Democratizing Innovation. MIT Press and Von Hippel, E. (2016) Free Innovation, MIT Press.

  24. 24.

    Dahlander, L., Piezunka, H., & Jeppesen, L. 2018. How organizations manage crowds: Define, broadcast, attract and select. In J. Sydow and H. Berends (eds.) Managing Inter-organizational collaborations—Process View. Part of a series: Research in the Sociology of Organizations. They review the crowdsourcing literature and confirms that Idea searching is the current dominant form of crowdsourcing for innovation.

  25. 25.

    Lakhani, K. R., Lifshitz-Assaf, H., & Tushman, M. (2013). Open innovation and organizational boundaries: task decomposition, knowledge distribution and the locus of innovation. Handbook of Economic Organization: Integrating Economic and Organizational Theory, 355–382; Jeppesen, L. B & Lakhani, E. R. 2010. Marginality and problem-solving effectiveness in broadcast search. Organization Science, 21(5), 1016–1033; Nickerson, J A., T. R. Zenger. 2004. A knowledge-based theory of the firm: The problem solving perspective. Organ. Sci. 15(6), 617–632.

  26. 26.

    West, J., Bogers, M., 2014. Leveraging external sources of innovation: a review of research on open innovation. J. Prod. Innov. Manag. 31 (4), 814–831.

  27. 27.

    Afuah, A., & Tucci, C. L. (2012). Crowdsourcing as a solution to distant search. Academy of Management Review, 37(3): 355–375; Vukovic M., Mariana L., Laredo, J. PeopleCloud for the globally integrated enterprise. In: Asit D et al. (eds) Service-oriented computing. Berlin/Heidelberg: Springer-Verlag, 2009; Heer J., Bostock M. Crowdsourcing graphical perception: using mechanical turk to assess visualization design. In: Proceedings of the 28th international conference on human factors in computing systems, CHI’10, ACM, New York, 2010, pp. 203–212; Esteles-Arolas, E. & Gonzalex-Ladron-de-Guevara, F. (2012). Towards an integrated crowdsourcing definition. J Inf Sci, 38, 189–200; Dahlander, L., Piezunka, H., & Jeppesen, L. 2018. How organizations manage crowds: Define, broadcast, attract and select. In J. Sydow and H. Berends (eds.) Managing Inter-organizational collaborations—Process View. Part of a series: Research in the Sociology of Organizations.

  28. 28.

    Lopez-Vega, H., Tell, F., & Vanhaverbeke, W. (2016). Where and how to search? Search paths in open innovation. Research Policy, 45(1), 125–136.

  29. 29.

    Mack, T., & Landau, C. (2015). Winners, losers, and deniers: Self-selection in crowd innovation contests and the roles of motivation, creativity, and skills. Journal of Engineering and Technology Management, 37, 52–64.

  30. 30.

    Jeppesen, L. B & Lakhani, E. R. 2010. Marginality and problem-solving effectiveness in broadcast search. Organization Science, 21(5), 1016–1033.

  31. 31.

    See review of crowdsourcing processes by Dahlander, L., Piezunka, H., Jeppesen, L. B. 2018. How organizations manage crowds: Define, broadcast and select. In J. Sydow & H. Berends (Eds) Research in the Sociology of Organizations, Sept 2018.

  32. 32.

    Lévy, P. (1997 [1995] pp. 13–14) Collective Intelligence: Mankind’s Emerging World in Cyberspace (R. Bononno, Trans.) New York: Plenum. Cited in: Brabham, D. C. (2008). Crowdsourcing as a model for problem solving: An introduction and cases. Convergence, 14(1), 75–90.

  33. 33.

    Woolley, A. W., C. F. Chabris, A. Pentland, N. Hashmi, T. W. Malone. (2010). Evidence for a collective intelligence factor in the performance of human groups. Science 330(6004) 686–688.

  34. 34.

    Malone, T. W., & Bernstein, M. S. (Eds.). (2015). Handbook of collective intelligence. MIT Press.

  35. 35.

    Malone, T. W., & Bernstein, M. S. (Eds.). (2015). Handbook of collective intelligence. MIT Press;.Woolley, A., & Fuchs, E. (2011) Collective Intelligence in the Organization of Science OrganizationScience, 22(5), 1359–1367.

  36. 36.

    Valentine, M. A., Retelny, D., To, A., Rahmati, N., Doshi, T., & Bernstein, M. S. (2017, May). Flash organizations: Crowdsourcing complex work by structuring crowds as organizations. In Proceedings of the 2017 CHI conference on human factors in computing systems (pp. 3523–3537). ACM.

  37. 37.

    Surowiecki, J. (2004) The Wisdom of Crowds. NY: Random House.

  38. 38.

    J. Howe (2006). The rise of Crowdsourcing. Wired, Issue 14.06. Over 40 of these more general definitions of crowdsourcing were reviewed and integrated by Esteles-Arolas, E & Gonzalex-Ladron-de-Guevara, F. (2012). Towards an integrated crowdsourcing definition. J Inf Sci, 38, 189–200.

  39. 39.

    Esteles-Arolas, E & Gonzalex-Ladron-de-Guevara, F. (2012). Towards an integrated crowdsourcing definition. J Inf Sci, 38, 189–200.

  40. 40.

    See review on crowdsourcing by Dahlander, L, Piezunka, H., Jeppesen, L.B. 2018. How organizations manage crowds: Define, broadcast and select. In J. Sydow & H. Berends (Eds) Research in the Sociology of Organizations, Sept 2018.

  41. 41.

    The Well-Known Variation/Selection/Retention Model to Innovation has been discussed in: classic texts in psychology, sociology, management, business strategy, economics, and organization studies. See for example: Campbell, D. T. (1960). Blind variation and selective retention in creative thought as in other knowledge processes. Psychological Review, 67, 380–400; Simonton, D. K. (2011). Creativity and discovery as blind variation: Campbell's (1960) BVSR model after the half-century mark. Review of General Psychology, 15(2), 158–174; Staw, B. M. 1990. An evolutionary approach to creativity and innovation. In M. West & J. L. Farr (Eds.), Innovation and creativity at work: Psychological and organizational strategies: 287–308. Chichester, UK: Wiley; Nelson, R. R., & Sidney, G. (1982). Winter. 1982. An evolutionary theory of economic change, 929–964.

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  44. 44.

    Chesbrough (2003, 2006, 2011).

  45. 45.

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    Lifshitz-Assaf, H. (2018). Dismantling knowledge boundaries at NASA: The critical role of professional identity in open innovation. Administrative science quarterly, 63(4), 746–782.

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    Schemmann, Brita et al. (2016) Crowdsourcing ideas: Involving ordinary users in the ideation phase of new product development. Research Policy. [Online] 45 (6), 1145–1154.

  94. 94.

    Franke, N., Lettl, C., Roiser, S., Tuertscher, P., 2013. Does god play dice? Randomness vs. deterministic explanations of idea originality in crowdsourcing. In: 35th DRUID Celebration Conference 2013, Barcelona, Spain.

  95. 95.

    Dahlander, L. & Piezunka, H. 2014. Open to suggestions: How organizations elicit suggestions through proactive and reactive attention. Research Policy, 43(5), 812–827.

  96. 96.

    Poetz, M. K., & Schreier, M. 2012. The value of crowdsourcing: Can users really compete with professionals in generating new product ideas? Journal of Product Innovation Management, 29(2) 245–256.

  97. 97.

    Blohm, I, Bretschneider, U., Leimeister, J. M., Krcmar, H. 2011. Does collaboration among participants lead to better ideas in IT-based idea competitions? An empirical investigation. International J of Networking and Virtual Organizations, 9(2), pp. 106–122.

  98. 98.

    Nambisan, S., Baron, R. A., 2010. Different roles, different strokes: Organizing virtual customer environments to promote two types of customer contributions. Organ. Sci. 21, 554–572; Franke, N., Keinz, P., Klausberger, K., 2012. “Does this sound like a fair deal?” Antecedents and consequences of fairness expectations in the individual’s decision to participate in firm innovation. Organ. Sci. 24, 1495–1516; Adamczyk et al. (2012), Mack and Landau (2015).

  99. 99.

    Boudreau, K. J., Lacetera, N., & Lakhani, K. R. 2011. Incentives and problem uncertainty in innovation contests: An empirical analysis. Management Science, 57(5): 843–863.

  100. 100.

    Bullinger, A. C., Neyer, A. K., Rass, M. & Moeslein, K. (2010) Community-based innovation contests: Where competition meets cooperation. Creativity and innovation management, 19(3), 390–303.

  101. 101.

    Mattarelli, E., Schecter, A., Hinds, P. Contractor, N., Lu, C., Topac, B. (2018). How co-creation processes unfold and predict submission quality in crowd-based open innovation. Thirty-Ninth International Conference on Information Systems, San Francisco.

  102. 102.

    Wilson, M., Robson, K., & Botha, E. (2017). Crowdsourcing in a time of empowered stakeholders: lessons from crowdsourcing campaigns. Business Horizons, 60(2), 247–253.

  103. 103.

    Example originally provided by Jeppesen, L. B. & Lakhani, K. R. (2010) Marginality and problem-solving effectiveness in broadcast search. Org Sci, 21(5), 1016–1033.

  104. 104.

    Quote in Dahlander, L, Piezunka, H., Jeppesen, L. B. 2018. How organizations manage crowds: Define, broadcast and select. In J. Sydow & H. Berends (Eds) Research in the Sociology of Organizations, Sept 2018.

  105. 105.

    Fuller, J., Hutter, K., & Faullant, R. Why co-creation experience matters? Creative experience and its impact on the quantity and quality of creative contributions. R&D Management 41(3), 2011, pp. 259–273.

  106. 106.

    Whittington (2011, 2015); Seidl et al. (2018).

  107. 107.

    Camillus (2008, HB).

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  1. University of Southern California, Los Angeles, CA, USA

    Ann Majchrzak

  2. University of North Carolina, Chapel Hill, NC, USA

    Arvind Malhotra

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  2. Arvind Malhotra
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Correspondence to Ann Majchrzak .

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Majchrzak, A., Malhotra, A. (2020). What Is Crowdsourcing for Innovation?. In: Unleashing the Crowd. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-25557-2_1

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