Crowdsourcing New Product Ideas Over Time: An Analysis of Dell's Ideastorm Community

doi:10.2139/SSRN.1979557

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Crowdsourcing New Product Ideas Over Time: An Analysis of Dell's Ideastorm Community

Journal Article•DOI•

Crowdsourcing New Product Ideas Over Time: An Analysis of Dell's Ideastorm Community

Barry L. Bayus¹•Institutions (1)

University of North Carolina at Chapel Hill¹

04 Jan 2012-Social Science Research Network-

TL;DR: Studying Dell's IdeaStorm community, serial ideators are found to be more likely than consumers with only one idea to generate an idea the organization finds valuable enough to implement, but they are unlikely to repeat their early success once their ideas are implemented.

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Abstract: Several organizations have developed ongoing crowdsourcing communities that repeatedly collect ideas for new products and services from a large, dispersed “crowd” of non-experts (consumers) over time. Despite its promises, little is known about the nature of an individual’s ideation efforts in such an online community. Studying Dell’s IdeaStorm community, serial ideators are found to be more likely than consumers with only one idea to generate an idea the organization find valuable enough to implement, but are unlikely to repeat their early success once their ideas are implemented. As ideators with past success attempt to again come up with ideas that will excite the organization, they instead end up proposing ideas similar to their ideas that were already implemented (i.e., they generate less diverse ideas). The negative effects of past success are somewhat mitigated for ideators with diverse commenting activity on others’ ideas. These findings highlight some of the challenges in maintaining an ongoing supply of quality ideas from the crowd over time.

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Journal Article•DOI•

Crowdfunding: Tapping the Right Crowd

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Paul Belleflamme¹, Paul Belleflamme², Thomas Lambert³, Thomas Lambert⁴, Armin Schwienbacher⁵ - Show less +1 more•Institutions (5)

Center for Economic Studies¹, Université catholique de Louvain², Erasmus Research Institute of Management³, Erasmus University Rotterdam⁴, Skema Business School⁵

09 Jul 2013-Social Science Research Network

TL;DR: In this paper, the authors compare two forms of crowdfunding: entrepreneurs solicit individuals either to pre-order the product or to advance a fixed amount of money in exchange for a share of future profits (or equity).

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Abstract: With crowdfunding, an entrepreneur raises external financing from a large audience (the "crowd"), in which each individual provides a very small amount, instead of soliciting a small group of sophisticated investors. This article compares two forms of crowdfunding: entrepreneurs solicit individuals either to pre-order the product or to advance a fixed amount of money in exchange for a share of future profits (or equity). In either case, we assume that "crowdfunders" enjoy "community benefits" that increase their utility. Using a unified model, we show that the entrepreneur prefers pre-ordering if the initial capital requirement is relatively small compared with market size and prefers profit sharing otherwise. Our conclusions have implications for managerial decisions in the early development stage of firms, when the entrepreneur needs to build a community of individuals with whom he or she must interact. We also offer extensions on the impact of quality uncertainty and information asymmetry.

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1,400 citations

Journal Article•DOI•

Digital marketing: A framework, review and research agenda

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P.K. Kannan¹, Hongshuang Li²•Institutions (2)

University of Maryland, College Park¹, Indiana University²

01 Mar 2017-International Journal of Research in Marketing

TL;DR: In this article, the authors present a framework for research in digital marketing that highlights the touchpoints in the marketing process as well as in marketing strategy process where digital technologies are having and will have a significant impact.

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749 citations

Cites background from "Crowdsourcing New Product Ideas Ove..."

...Bayus (2013) researching Dell's Ideastorm platform found that cus-...
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...Bayus (2013) researching Dell’s Ideastorm platform found that customers who repeatedly submitted ideas were more likely to provide good ideas but once they won their success rate dropped....
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Journal Article•DOI•

A Thematic Exploration of Digital, Social Media, and Mobile Marketing: Research Evolution from 2000 to 2015 and an Agenda for Future Inquiry

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Cait Lamberton¹, Andrew T. Stephen²•Institutions (2)

University of Pittsburgh¹, University of Oxford²

01 Nov 2016-Journal of Marketing

TL;DR: In this paper, the authors track the changes in scholarly researchers' perspectives on three major digital, social media, and mobile (DSMM) marketing themes from 2000 to 2015, and identify key themes emerging in five-year time frames during this period.

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Abstract: Over the past 15 years, digital media platforms have revolutionized marketing, offering new ways to reach, inform, engage, sell to, learn about, and provide service to customers. As a means of taking stock of academic work’s ability to contribute to this revolution, this article tracks the changes in scholarly researchers’ perspectives on three major digital, social media, and mobile (DSMM) marketing themes from 2000 to 2015. The authors first use keyword counts from the premier general marketing journals to gain a macro-level view of the shifting importance of various DSMM topics since 2000. They then identify key themes emerging in five-year time frames during this period: (1) DSMM as a facilitator of individual expression, (2) DSMM as decision support tool, and (3) DSMM as a market intelligence source. In both academic research to date and corresponding practitioner discussion, there is much to appreciate. However, there are also several shortcomings of extant research that have limited its rel...

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643 citations

Journal Article•DOI•

Crowdfunding creative ideas: the dynamics of project backers in kickstarter

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Venkat Kuppuswamy¹, Barry L. Bayus¹•Institutions (1)

University of North Carolina at Chapel Hill¹

01 Jan 2013-Social Science Research Network

TL;DR: This article studied the role of social information in the dynamic behavior of project backers and found that additional backer support is negatively related to its past backer support, while the diffusion of responsibility effects diminish as the project funding cycle approaches its closing date.

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Abstract: Entrepreneurs are turning to crowdfunding as a way to finance their creative ideas. Crowdfunding involves relatively small contributions of many consumer-investors over a fixed time limit (generally a few weeks). In online crowdfunding communities, potential donors can see the level of support from other project backers as well as its timing before making their own funding decisions, suggesting that social information (i.e., others’ funding decisions) will play an important role in the ultimate success of a project. Two years of publicly available panel data on successfully and unsuccessfully funded projects listed on Kickstarter is used to empirically study the role of social information in the dynamic behavior of project backers. Building off the well-established social psychology theory around diffusion of responsibility effects, we show that additional backer support is negatively related to its past backer support. Many potential backers do not contribute to a project that has already received a lot of support because they assume that others will provide the necessary funding. Consistent with the deadline effect widely observed in bargaining and online auctions, we also show that the diffusion of responsibility effects diminish as the project funding cycle approaches its closing date. Moreover, as the project deadline draws near we find that project updates tend to increase as the project creators make a final plea for help to reach their funding goal. Reduced diffusion of responsibility effects, together with the positive influence of project updates, lead to generally increasing project support in the final stages of funding. This is particularly the case for projects that successfully achieve their goals as they are more likely to have an update in the last weeks of funding and generate more excitement from recent backers than projects that fall short.

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590 citations

Cites background from "Crowdsourcing New Product Ideas Ove..."

...1This is conceptually similar to crowdsourcing in which community members (non-experts) propose new product and service ideas, as well as comment on and vote for the ideas of others (Bayus 2013)....
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...…in which community members (non-experts) propose new product and service ideas, as well as comment on and vote for the ideas of others (Bayus 2013). and bidders tend to herd into online auctions with more bids even though this activity is not a signal of higher quality (Simonsohn and…...
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Journal Article•DOI•

The influence of online information on investing decisions of reward-based crowdfunding

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Sheng Bi, Zhiying Liu, Khalid Usman

01 Feb 2017-Journal of Business Research

TL;DR: Wang et al. as mentioned in this paper developed a research model and conducted an empirical study using objective data collected from a Chinese crowdfunding website and found that signals of quality and electronic word of mouth have significant positive effects on funder investment decisions.

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330 citations

Cites background from "Crowdsourcing New Product Ideas Ove..."

...The concept of crowdfunding originated from crowdsourcing, a broader concept, which refers to using the crowd to obtain ideas, feedback, and solutions to develop corporate activities (Belleflamme, Lambert, and Schwienbacher, 2014; Bayus, 2013; Kleemann, Voß, and Rieder, 2008). In one of the few published overviews of the topic, Schwienbacher and Larralde (2010) defined crowdfunding as “an open call, essentially through the Internet, for the provision of financial resources either in form of donation or in exchange for some form of reward and/or voting rights in order to support initiatives for specific purposes....
[...]
...The concept of crowdfunding originated from crowdsourcing, a broader concept, which refers to using the crowd to obtain ideas, feedback, and solutions to develop corporate activities (Belleflamme, Lambert, and Schwienbacher, 2014; Bayus, 2013; Kleemann, Voß, and Rieder, 2008). In one of the few published overviews of the topic, Schwienbacher and Larralde (2010) defined crowdfunding as “an open call, essentially through the Internet, for the provision of financial resources either in form of donation or in exchange for some form of reward and/or voting rights in order to support initiatives for specific purposes.” Buysere, Gajda, Kleverlaan, and Marom (2012) stated that crowdfunding could be defined as “a collective effort of many individuals who networked and pooled their resources to support efforts initiated by other people or organizations.” However, Mollick (2014) argued that for academics examining new ventures and entrepreneurial finance where crowdfunding is particularly salient, a narrower definition of the term is preferable. He gave this definition of crowdfunding: “Crowdfunding refers to the efforts by entrepreneurial individuals and groups cultural, social, and for profit to fund their ventures by drawing on relatively small contributions from a relatively large number of individuals using the internet, without standard financial intermediaries.” After clarifying the definition of crowdfunding, Hemer (2011) argued that the categorization of the four main types of crowdfunding (donation-based, reward-based, lending, and equity) is based on what, if anything, investors receive for their contributions, and the legal complexity and...
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...The introduction aims to explain the purpose of the project and the specific deliverables that they aim to produce with the contributed funds (Kuppuswamy and Bayus, 2015). In the introduction of the crowdfunding project, the creator needs to offer much detailed information. For example, in a technology project, the creator will clarify product specification information, saying which colors can be chosen, describing the usage scenarios, etc. In Entertainment projects, such as a film project, the creator needs to outline the main plot of the movie, introduce the director and actors, and explain the specific deliverables they will offer to investors. Overall, in this study, we believe that the detailed narrative of a project, more specifically, the introduction word count of a reward-based crowdfunding project is a typical signal of project quality: themore detailed the introduction (judging byword count), themore readerswill decide to invest. In Mollick's (2013, 2014) exploratory empirical study, he followed the lead of Chen, Yao, and Kotha (2009) in focusing on the role of preparedness as a signal of quality to investors....
[...]
...The concept of crowdfunding originated from crowdsourcing, a broader concept, which refers to using the crowd to obtain ideas, feedback, and solutions to develop corporate activities (Belleflamme, Lambert, and Schwienbacher, 2014; Bayus, 2013; Kleemann, Voß, and Rieder, 2008). In one of the few published overviews of the topic, Schwienbacher and Larralde (2010) defined crowdfunding as “an open call, essentially through the Internet, for the provision of financial resources either in form of donation or in exchange for some form of reward and/or voting rights in order to support initiatives for specific purposes.” Buysere, Gajda, Kleverlaan, and Marom (2012) stated that crowdfunding could be defined as “a collective effort of many individuals who networked and pooled their resources to support efforts initiated by other people or organizations....
[...]
...The introduction aims to explain the purpose of the project and the specific deliverables that they aim to produce with the contributed funds (Kuppuswamy and Bayus, 2015). In the introduction of the crowdfunding project, the creator needs to offer much detailed information. For example, in a technology project, the creator will clarify product specification information, saying which colors can be chosen, describing the usage scenarios, etc. In Entertainment projects, such as a film project, the creator needs to outline the main plot of the movie, introduce the director and actors, and explain the specific deliverables they will offer to investors. Overall, in this study, we believe that the detailed narrative of a project, more specifically, the introduction word count of a reward-based crowdfunding project is a typical signal of project quality: themore detailed the introduction (judging byword count), themore readerswill decide to invest. In Mollick's (2013, 2014) exploratory empirical study, he followed the lead of Chen, Yao, and Kotha (2009) in focusing on the role of preparedness as a signal of quality to investors. In Mollick's (2014) study, he believes that when project initiators are making preparatory material, most crowdfunding platforms advise that the key to demonstrating preparation is to include a video....
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References

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Monograph•DOI•

Microeconometrics: Methods and Applications

[...]

A. Colin Cameron¹, Pravin K. Trivedi²•Institutions (2)

University of California, Davis¹, Indiana University²

09 May 2005

TL;DR: This chapter discusses models for making pseudo-random draw, which combines asymptotic theory, Bayesian methods, and ML and NLS estimation with real-time data structures.

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Abstract: This book provides the most comprehensive treatment to date of microeconometrics, the analysis of individual-level data on the economic behavior of individuals or firms using regression methods for cross section and panel data. The book is oriented to the practitioner. A basic understanding of the linear regression model with matrix algebra is assumed. The text can be used for a microeconometrics course, typically a second-year economics PhD course; for data-oriented applied microeconometrics field courses; and as a reference work for graduate students and applied researchers who wish to fill in gaps in their toolkit. Distinguishing features of the book include emphasis on nonlinear models and robust inference, simulation-based estimation, and problems of complex survey data. The book makes frequent use of numerical examples based on generated data to illustrate the key models and methods. More substantially, it systematically integrates into the text empirical illustrations based on seven large and exceptionally rich data sets.

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8,189 citations

"Crowdsourcing New Product Ideas Ove..." refers background or methods in this paper

...Because of the large number of panels (individuals), estimation of the fixed-effects models is accomplished using a conditional maximum likelihood estimator where all timeinvariant individual effects i are conditioned out of the model using an individual’s total count (Cameron and Trivedi 2009)....
[...]
...Estimation Approach Panel logit models are used to estimate the effects of the explanatory variables when the dependent variable is binary and panel Poisson10 models are used when the dependent variable is a count (Cameron and Trivedi 2009)....
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...Because of the large number of panels (individuals), estimation of the fixed-effects models is accomplished using a conditional maximum likelihood estimator where all timeinvariant individual effects i are conditioned out of the model using an individual’s total count (Cameron and Trivedi 2009)....
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...%) had two or more ideas in a single day (one person proposed 20 ideas in the same day).9 8 Including this constraint (the coefficient of ln(Number of ideas)= 1) controls for possible differences across ideators in sheer quantity of ideas proposed in a single day (Cameron and Trivedi 2009)....
[...]
...Panel logit models are used to estimate the effects of the explanatory variables when the dependent variable is binary and panel Poisson10 models are used when the dependent variable is a count (Cameron and Trivedi 2009)....
[...]

Journal Article•DOI•

An attributional theory of achievement motivation and emotion.

[...]

Bernard Weiner

01 Jan 1985-Psychological Review

TL;DR: In this chapter a theory of motivation and emotion developed from an attributional perspective is presented, suggesting that causal attributions have been prevalent throughout history and in disparate cultures and some attributions dominate causal thinking.

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Abstract: In this chapter a theory of motivation and emotion developed from an attributional perspective is presented Before undertaking this central task, it might be beneficial to review the progression of the book In Chapter 1 it was suggested that causal attributions have been prevalent throughout history and in disparate cultures Studies reviewed in Chapter 2 revealed a large number of causal ascriptions within motivational domains, and different ascriptions in disparate domains Yet some attributions, particularly ability and effort in the achievement area, dominate causal thinking To compare and contrast causes such as ability and effort, their common denominators or shared properties were identified Three causal dimensions, examined in Chapter 3, are locus, stability, and controllability, with intentionality and globality as other possible causal properties As documented in Chapter 4, the perceived stability of a cause influences the subjective probability of success following a previous success or failure; causes perceived as enduring increase the certainty that the prior outcome will be repeated in the future And all the causal dimensions, as well as the outcome of an activity and specific causes, influence the emotions experienced after attainment or nonattainment of a goal The affects linked to causal dimensions include pride (with locus), hopelessness and resignation (with stability), and anger, gratitude, guilt, pity, and shame (with controllability)

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6,982 citations

"Crowdsourcing New Product Ideas Ove..." refers background in this paper

...Here, an individual’s own1 implemented ideas are clearly very familiar and thus are highly salient exemplars of the types of ideas that the organization desires (Weiner 1985, 1 A similar line of reasoning can be used to hypothesize the effects of others’ implemented ideas....
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...Thus, whether or not an idea is actually implemented is the key success outcome considered in this study....
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Journal Article•DOI•

The nature of human intelligence.

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J. P. Guilford

01 Mar 1968-American Educational Research Journal

TL;DR: There is a lot of books, user manual, or guidebook that related to The Nature Of Human Intelligence PDF, such as : classical mechanics upadhyaya bond more third papers in non verbal reasoning 9 10 years fiesta mk4 manual a visit of charity origami insects dover origami papercraft robert j lang author powerone bdsm big magic creative living beyond fear the weaver of tomorrow and dawn strider two stories calculus finney demana waits kennedy 3rd edition mathematical models in population biology and epidemiology texts in applied mathematics as discussed by the authors.

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Abstract: There is a lot of books, user manual, or guidebook that related to The Nature Of Human Intelligence PDF, such as : classical mechanics upadhyaya bond more third papers in non verbal reasoning 9 10 years fiesta mk4 manual a visit of charity origami insects dover origami papercraft robert j lang author powerone bdsm big magic creative living beyond fear the weaver of tomorrow and dawn strider two stories calculus finney demana waits kennedy 3rd edition mathematical models in population biology and epidemiology texts in applied mathematics

...read moreread less

4,768 citations