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International Journal of Management Reviews, Vol.

20, 343–363 (2018)


DOI: 10.1111/ijmr.12135

Crowdsourcing: A Review and Suggestions


for Future Research
Antonio Ghezzi, Donata Gabelloni,1 Antonella Martini1 and Angelo Natalicchio2
Politecnico di Milano, Department of Management, Economics and Industrial Engineering, Via Lambruschini, 4B,
20156, Milan, Italy, 1 Università di Pisa, DESTEC, L.go L. Lazzarino, 2, 56122, Pisa, Italy, and 2 Politecnico di Bari,
Department of Mechanics, Mathematics, and Management, Viale Japigia 182/B, 70126, Bari, Italy
Corresponding author email: antonio1.ghezzi@polimi.it

As academic and practitioner studies on crowdsourcing have been building up since


2006, the subject itself has progressively gained in importance within the broad field
of management. No systematic review on the topic has so far appeared in management
journals, however; moreover, the field suffers from ambiguity in the topic’s definition,
which in turn has led to its largely unstructured evolution. The authors therefore in-
vestigate the existing body of knowledge on crowdsourcing systematically through a
penetrating review in which the strengths and weakness of this literature stream are
presented clearly and then future avenues of research are set out. The review is based on
121 scientific articles published between January 2006 and January 2015. The review
recognizes that crowdsourcing is ingrained in two mainstream disciplines within the
broader subject matter of innovation and management: (1) open innovation; and (2)
co-creation. The review, in addition, also touches on several issues covered in other the-
oretical streams: (3) information systems management; (4) organizational theory and
design; (5) marketing; and (6) strategy. The authors adopt a process perspective, ap-
plying the ‘Input–Process–Output’ framework to interpret research on crowdsourcing
within the broad lines of: (1) Input (Problem/Task); (2) Process (session management;
problem management; knowledge management; technology); and (3) Outcome (solu-
tion/completed task; seekers’ benefits; solvers’ benefits). This framework provides a
detailed description of how the topic has evolved over time, and suggestions concerning
the future direction of research are proposed in the form of research questions that are
valuable for both academics and managers.

Introduction an undefined (and generally large) network of peo-


ple in the form of an open call. This can take the
Crowdsourcing is ingrained in research on open inno- form of peer-production (when the job is performed
vation and co-creation and is concerned with whether collaboratively), but is also often undertaken by sole
individuals (expert or novices). The crucial prereq-
a wide number of individuals – the ‘crowd’ – can
uisite is the use of the open call and large network
take part actively in a company’s innovation processes of potential labours. (Howe 2006)
(Chui et al. 2012), thereby allowing the company ac-
cess to intelligence and knowledge that is otherwise
dispersed among a great many users or stakeholders This definition supports the argument that crowd-
(Chanal and Caron-Fasan 2010; Schenk and Guittard sourcing has its origin in research on co-creation,
2011). putting forward the suggestion that it makes sense to
In 2006, Howe coined the term crowdsourcing and widen the pool of individuals who contribute towards
defined it as the process of value creation (Chui et al. 2012; Greer
and Lei 2012). We can, in fact, say that crowdsourc-
the act of a company or institution taking a function ing is a branch of co-creation practice that has been
once performed by employees and outsourcing it to made possible through the upsurge of the web, where


C 2017 British Academy of Management and John Wiley & Sons Ltd. Published by John Wiley & Sons Ltd, 9600 Garsington
Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA
344 A. Ghezzi et al.

Total number of Arcles on Crowdsourcing: 2006-2015


(Academic Journals and Proceedings)
1000

total number of arcles published


900
800
700
600
500
400
300
200
100
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
years

Figure 1. Academic articles and proceedings on ‘crowdsourcing’ in Scopus – Social Sciences & Humanities – Cumulative
Source: SciVerse Scopus database (accessed 1 October 2015)
[Colour figure can be viewed at wileyonlinelibrary.com]

the ‘crowd’ can help in validating, modifying and im- tasks (an example of this is found on the Amazon
proving a company’s value-creating idea or the ma- Mechanical Turk platform) to much more complex
terial it posts over the Internet. The process can also solutions to R&D problems, involving sourcing
apply the idea generation phase whenever a company new ideas or introducing innovative applications for
asks customers or other outsiders to bring their own existing concepts (see the InnoCentive platform).
concepts and designs to the process (Chui et al. 2012; Both these types of requests fall within the scope of
Poetz and Schreier 2012). The Internet was clearly crowdsourcing practice, although the former consists
the main enabling factor for crowdsourcing, because of solving small repetitive tasks without introducing
companies were able to tap into a potentially unlim- any intrinsic innovative features, while the latter deals
ited number of people with very little effort. With with creating new knowledge for the company. The
the joint combination of the web and co-creation dy- crowd can, therefore, be involved either as the execu-
namics, this meant that the crowd was co-opted as a tor of ordinary tasks or as a contributor participating
major partner in the innovation processes taking place in the company’s innovation process. Rouse (2010)
within companies. has outlined the difference between the two, showing
Crowdsourcing is also in step with the literature that, depending on the level and type of innovation
on open innovation: idea competitions are a core requested from the crowd, crowdsourcing can be seen
practice in open innovation (Leimeister et al. 2009) either as an open innovation practice and support tool
and are, moreover, also listed in the literature among or merely as a new way to outsource simple tasks.
potential crowdsourcing initiatives (Brabham 2009;
Terwiesch and Xu 2008). In addition, in current re- Setting the scene for the review
search, crowdsourcing is often mentioned explicitly
as being an inbound open innovation practice where Research on crowdsourcing has flourished since
individual people are brought in to help solve a prob- Howe (2006) came up with the term (see Figure 1).
lem (e.g. Chanal and Caron-Fasan 2010; Terwiesch Owing to the many possible interpretations and appli-
and Xu 2008). cations and to the concept’s appeal in some quarters
While this is the case, whether crowdsourcing can as a management catchword or motto, crowdsourcing
actually be included among open innovation practices has been studied by scholars and practitioners within
depends on two key factors: (1) the intrinsic nature several management and information systems disci-
of the problem that a company wants to solve and its plines (Whitla 2012).
complexity (Vukovic 2009); and (2) the role assigned Conceptual and empirical articles on crowdsourc-
to the crowd (Rouse 2010). A crowdsourcing request ing have been amassed over the past ten years,
may involve anything that the company is in need showing an exponential growth in this area. While
of, ranging from the simple execution of repetitive a blanket search in Google Scholar threw up about


C 2017 British Academy of Management and John Wiley & Sons Ltd.
Crowdsourcing 345

74,400 results, a filtered search in the SciVerse Sco- that we intend to address in this study. Secondly, al-
pus database retrieved 972 articles in the field of So- though crowd-based models originated from fairly
cial Sciences & Humanities with ‘crowdsourcing’ in well-established research on customer involvement
their title, abstract or keywords and published in aca- (e.g. Von Hippel 1986) and attracted the attention of
demic journals or conference proceedings from 2006 scholars, currently these models have no strong se-
onwards (of these, 798 were published very recently, mantic or theoretical foundations. More specifically,
in 2012 or later). crowdsourcing is often analysed following a some-
A decade on from when crowdsourcing entered what disjointed approach rather than being assessed
the lexicon of management, it is now evident that from an overarching management perspective that can
the research stream has proceeded along a number of disclose multifaceted implications. This gap leaves
paths (Geiger et al. 2011; Whitla 2012), crossing over room for revising the current definitions, identifying
the boundaries of innovation and technology theory the controversies and common patterns and highlight-
where the concept had been originally conceived. ing the strengths and weaknesses in the research field.
However, the relatively rapid diffusion of this con- Citing Afuah and Tucci (2013, p. 460): ‘From a the-
cept in many different directions has simultaneously ory point of view, there is still much that needs to
meant that the relative stream of literature has ex- be done as far as theorizing about crowdsourcing is
panded in an often unstructured and convoluted man- concerned. [ . . . ] There is plenty of room to add value
ner, with different scholars drawing totally opposite to this very timely subject’. Thirdly, and more inter-
conclusions and sometimes departing entirely from estingly, crowdsourcing as a literature stream clearly
the original definition. In existing studies, there is a bridges traditional barriers in the management field
generic lack of consensus on the meaning of crowd- that revolve around the interplay of several distinct
sourcing, as well as a certain semantic confusion principles. In this review, we find that research into
about the word (Whitla 2012). While it is not un- crowdsourcing originated from – and, in turn, feeds
common to find a degree of disagreement in terms into – the streams of: (1) open innovation; and (2)
of definition or concept during the phase when new co-creation. However, it also (and often simultane-
ideas emerge (Gladwin et al. 1995), any lack of clar- ously) stands at the crossroad between several main-
ity risks undermining the development of theories in stream management disciplines. The list includes in-
a potentially promising field and this could influence formation systems management (e.g. technologies,
a number of management-related areas. platforms, mechanisms, algorithms), marketing (e.g.
In the light of these considerations, the aim of this advertising and promotion, marketing research), or-
study is to conduct an extensive and systematic re- ganizational theory and design (e.g. influence on mi-
view of the existing body of knowledge relating to cro/macro design choices and behaviour, influence
crowdsourcing, outlining the multifaceted evolution on management, employees and external actors’ be-
of this research between 2006 and 2015. haviour, motivation and performance), and strategy
A review on crowdsourcing is both timely and, for (e.g. strategic dialogue and involvement, business
several reasons, of interest to academics and prac- models). By being so positioned at the intersection
titioners in the field of management. We have built of mainstream management disciplines, crowdsourc-
up our argument following the guidelines set out by ing is a ‘porous’ concept in need of proper review and
Davis (1971) and Short (2009). formal structure and framework.
First, the increasing number of published studies Drawing from the broadly accepted view of in-
on the subject shows that crowdsourcing has been at- novation as a process, our proposal is to investigate
tracting much attention, although few proceedings pa- crowdsourcing from an Input–Process–Output (I–P–
pers contain literature reviews on crowdsourcing (Pan O) perspective. We, therefore, set out the following
and Blevis 2011; Pedersen et al. 2013; Wang et al. objectives: (1) to provide a systematic review of the
2013; Yuen et al. 2011) and, to the best of our knowl- process of crowdsourcing; and (2) to make sugges-
edge, no review article has so far been published on tions for future research.
this specific theme in journals on management and The review is structured as follows. The second
innovation. As an additional point, the existing re- section contains an original framework for organiz-
views by and large ignore the process perspective ing the literature, and the method employed to con-
that is typical of crowdsourcing endeavours, failing to duct the review is described in the third section. The
provide a formal framework that can be used to map descriptive statistics and analysis of the literature’s
the literature comprehensively. This first gap is one intellectual core are presented in the fourth section,


C 2017 British Academy of Management and John Wiley & Sons Ltd.
346 A. Ghezzi et al.

Figure 2. Input–Process–Output framework for crowdsourcing

while, in the fifth section, we discuss the definitions the main antecedents, components and outcomes
and taxonomies of crowdsourcing drawn from the of the process under scrutiny. The components
extant literature. The sixth section contains the main that make up our I–P–O crowdsourcing framework
findings and maps the published body of knowledge (Figure 2) have been drawn from studies on process
through the lenses of our framework. Lastly, future models (e.g. Burgelman 1983; Van de Ven 2007; Van
avenues of research are set out in the seventh section, Oorschot et al. 2013), and the resulting framework
with the conclusions of the study summarized in the was then used to review and interpret the extant
final section. literature.
The core components of our framework are de-
scribed in the following.
A framework to map the literature The main ‘Input’ of crowdsourcing systems is the
problem or task that has to be solved by the crowd (e.g.
Owing to its relative novelty, there is no unified frame- Geiger and Schader 2014). Based on the typology and
work that can broadly encompass the different stream the structure of the request set by the seeker (i.e. the
dealing with crowdsourcing literature. In an attempt organization with a particular problem or task) and,
to frame all the many multifaceted contributions on depending on the skills required from the crowd, the
crowdsourcing in a systemic fashion and so prevent crowdsourcing context will take on different features
fragmentation, we decided to take a process view and involve different processes. Basically, it is pos-
of this topic. Our proposal is anchored in innova- sible to identify two types of requests (Boudreau and
tion management (which is the theoretical field at the Lakhani 2013): (1) innovation-type problems, which
basis of crowdsourcing), and innovation is in gen- are well structured and generally require solvers (i.e.
eral acknowledged as a process (Keupp et al. 2012). the crowd of active participants) with well-defined
The same process approach is commonly used when skills. Every participant is given the same problem
analysing open innovation (e.g. Chesbrough 2006) to solve and the seeker selects a single solution or a
and co-creation (e.g. Greer and Lei 2012), both of subset of the same (e.g. InnoCentive problems); and
which, it is generally accepted, are at the origin of (2) micro-tasks, which are small tasks that do not
crowdsourcing. require solvers having specific skills. The micro-tasks
In this review, the process perspective has been in- can be well structured or not, and sometimes come
corporated into an original framework with emphasis into being when a macro-problem is broken down
on the I–P–O model (McGrath 1964). The I–P–O into more manageable parts. The macro-problem can
framework was recently used as the foundation then be solved by assembling all the contributions
for other studies in the field of management (e.g. provided by the many solvers (e.g. Google Image
Simsek 2009), because it can help to distinguish Labeler).


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Crowdsourcing 347

Looking at the ‘Processes’ involved in crowdsourc- such as crowdsourcing, if the scope of a literature
ing applications, the topics concerned can be divided review is broadened by including publications that
into the following main areas: belong to the ‘grey literature’ (i.e. the heterogeneous
body of published material that has not been subjected
1. session management, covering the operations car- to the traditional peer review process – Adams et al.
ried out by the seeker or intermediary to manage 2016b), this can lead to the inclusion of novel and
the crowdsourcing session relevant findings and avoid the lack of immediacy de-
2. people management, covering the strategies termined by the lag of academic knowledge (Adams
adopted by session managers to attract and mo- et al. 2016a).
tivate individual participants Since we wanted to focus on articles with
3. knowledge management, dealing with the organi- management-type implications, our search was lim-
zation and aggregation of the output from crowd- ited to the subject area of ‘Social Sciences and Hu-
sourcing processes, both during the session and manities’. In line with previous reviews (e.g. Di Ste-
once it has closed fano et al. 2010; Greer and Lei 2012), we adopted a
4. technologies for crowdsourcing, mostly involving multi-step process.
studies on Information and Communication Tech- In the first step, the following first level crite-
nologies (ICT) and on software tools used by the ria determined whether articles were included: (1)
crowdsourcing providers to manage crowdsourc- the articles were published between January 2006
ing processes. and January 2015; and (2) had to contain the term
‘crowdsourcing’ in their title, keywords or abstract.
With reference to the ‘Output’ of the process, there This search resulted in over 900 articles gathered.
are two different types of solutions and/or com- Although the notion of ‘crowd’ has generated other
pleted tasks: (1) a solution evaluated and selected streams, we have excluded these from this review a
by the seeker; (2) a micro-task that is often com- priori. Indeed, for example, ‘crowdfunding’ (where
bined with other micro-tasks to solve a larger problem projects are funded by a large pool of contributors) is
(Boudreau and Lakhani 2013). In addition to the solu- a research stream in itself (accounting for more than
tions/completed tasks, we can also identify the seek- 250 Scopus documents).
ers’ benefits (where the seeker can be either an organi- As a second step, we retained the articles that met
zation or an individual) and the solvers’ benefits, seen our more refined second-level criteria: (3) they must
as additional key themes within the output domain. be relevant, as inferred from their title or abstract,
It is worth noting that the contribution of each pa- or by examining the paper; (4) they must have been
per investigated, in terms of the discussion developed published in the journals and conference proceedings
and conclusion reached, may simultaneously apply to of Scopus, in the sub-subject areas of management,
more than one block in the I–P–O framework. business and decision sciences (including informa-
tion systems management); and (5) they must be writ-
ten in English. This phase allowed us to reduce the
Methodology number of papers in the sample significantly, resulting
in a working database of 121 articles.
The review starts by searching the SciVerse Scopus These articles collected were then examined
online database for scientific articles on crowd- through a comprehensive scheme of analysis or third-
sourcing. Since Scopus is less selective than, for level criteria, where the following were considered:
example, the Web of Science (more than 23,800 titles title; year; author/s; publication outlet; article type
and 5.8 million conference papers as of January (for the following labels: empirical; conceptual; lit-
2015), this potentially means that a wider array of erature review); related theoretical stream; research
international outlets are searched which, in turn, method (labels: case study; survey; conceptual-based;
could be more receptive to the emerging topic of mathematical model; simulation; empirical test); re-
crowdsourcing. search question/s; level of analysis of empirical stud-
Moreover, because of the recent and fast growth of ies (labels: solver; platform; seeker – single company;
the literature on crowdsourcing, we decided to review seeker – inter-company); definition of the crowd-
papers published in both academic journals and con- sourcing concept and construct; industry type; re-
ference proceedings. This decision came about from search findings; and Scopus citations. In this step,
the consideration that, in dynamic and growing fields the articles were classified according to the building


C 2017 British Academy of Management and John Wiley & Sons Ltd.
348 A. Ghezzi et al.

blocks belonging to the I–P–O framework proposed, research field (McCain 1990; Sidorova et al. 2008).
in view of obtaining a process view on crowdsourcing. For each of the published articles considered, Scopus
citation analysis was used to determine which arti-
cles contributed the most to the field. Our working
Descriptive statistics and intellectual database of articles received 1103 Scopus citations
core in the time-frame between January 2006 and Jan-
uary 2015. The intellectual core (Di Stefano et al.
Following the method presented above, our review 2010) was elaborated by comparing the average num-
sheds light on the general structure and characteris- ber of citations that refer to the articles in our working
tics of the published body of knowledge on crowd- database with the number of citations for each article
sourcing, so as to make insightful inferences on the in the database (the average was 9.11 citations, and
composition of the literature stream under scrutiny this was then taken as the objective threshold and used
and the relative trends. Examination of the articles to determine whether an article was to be included in
revealed the following findings: the core). We found that 18 Scopus articles received
more than nine citations, and this group was set as
r Crowdsourcing crosses the traditional boundaries the intellectual core for crowdsourcing. These 18 ar-
of academic disciplines, spanning from innova- ticles ratcheted up a total of 985 citations, equivalent
tion management (64% of the articles in the fi- to 89.3% of the total number of Scopus citations for
nal database) to information systems management the entire working database.
(27%), organizational theory and design (7%) and
marketing and strategy (2%).
r Of the articles in the sample, 23% are conceptual Definition of crowdsourcing and
and are concerned with laying the foundations of taxonomies
a theoretical definition of the topic; 75% follow an
empirical approach, where conclusions are drawn Before the extant literature is analysed, it is worth
from case studies and surveys on crowdsourcing digging deeper into the inherent meaning of crowd-
projects; the remaining 2% is made up of review sourcing, with a discussion on its definition and the
papers. taxonomies used in the literature to classify crowd-
r Crowdsourcing material has been dealt with, in sourcing initiatives.
52% of the published articles, through qualitative When it comes to defining the concept, most
methodology based on case studies; in 20% of the of the studies analysed make reference to Howe’s
articles, by employing a conceptual-based method- (2006) definition of crowdsourcing. Estellés-Arolas
ology; in 15%, through survey-based studies; and and González-Ladrón-de-Guevara (2012) prepared a
in 13%, by other empirical methods (e.g. mathe- first literature review of the existing definitions, and
matical models, simulations). this can possibly lead to a single unifying definition:

In over half the empirical studies (53%), the focus crowdsourcing is a type of participative online ac-
tivity in which an individual, an institution, a non-
is on the platform level, that is, on the intermediary
profit organization, or company proposes to a group
system used to manage the crowdsourcing project. of individuals of varying knowledge, heterogeneity
Only 16% of the published studies are solvers con- and number, via a flexible open call, the voluntary
sidered to be the key level of analysis, while in the undertaking of a task [ . . . ]. (Estellés-Arolas and
remaining 31% of studies, it is the seekers that have González-Ladrón-de-Guevara 2012, p. 198)
this role. This last subset can be further split into two
categories: (1) studies on a single organization, which Several crowdsourcing taxonomies are provided in
is turning to crowdsourcing for the solution to a prob- the literature. The most salient classifications make
lem, i.e. single seeking (29%); and (2) studies dealing reference to various different perspectives and in-
with the inter-organization cases (2%), where more clude: the nature of the task (e.g. Lukyanenko et al.
than one seeker takes part in the same crowdsourcing 2014; Pénin and Burger-Helmchen 2011; Rouse
process (often sponsored by only one of the seekers, 2010), the crowd characteristics (e.g. Saxton et al.
with little or no involvement of intermediaries). 2010; von Briel and Schneider 2012), the type of
In our structured literature review, we also iden- crowd knowledge (Diener and Piller 2009), the type
tified the intellectual core of crowdsourcing as a of remuneration (e.g. Geiger et al. 2011; Pénin and


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Crowdsourcing 349

Burger-Helmchen 2011), how far can contributors et al. 2012; Sieg et al. 2010). However, according
access each other’s contributions (Diener and Piller to Erickson et al. 2012a, two different types of tasks
2009; Geiger et al. 2011), how closely solvers work can be resolved successfully through crowdsourcing:
together (Weiwei 2012), the methods used to aggre- (1) routine time-consuming tasks; and (2) non-routine
gate the contributions (Geiger et al. 2011) and how complex tasks. Rouse (2010) identified an intermedi-
the crowdsourcing process actually takes place (Chiu ate class of problems, that of moderate tasks.
et al. 2014). Crowdsourcing is more suited to needs-based
The taxonomies developed are generally used to than technology-based problems (Poetz and Schreier
classify existing platforms (Corney et al. 2009; 2012) and it works for innovative, expertise-based
Geiger et al. 2011; von Briel and Schneider 2012), projects, but not for those of a trial-and-error vari-
while some researchers have classified crowdsourcing ety (Terwiesch and Xu 2008). On the flip side, some
systems from a theoretical point of view. For instance, studies still question whether crowdsourcing can give
Geiger et al. (2012) crafted a taxonomy to identify good results in an innovation-type problem (e.g.
four archetypal systems on the basis of two criteria Schuurman et al. 2012).
and so classify the ensuing contributions: (1) degree Additionally, the extant literature highlights differ-
of homogeneity; and (2) emergent vs. non-emergent ent types of problems/tasks or areas where crowd-
value. Pisano and Verganti (2008) defined four types sourcing is particularly effective, which include the
of collaboration based on the two features: (1) degree Text Retrieval Conference (TREC) relevance as-
of openness; and (2) network governance structure sessment (Alonso and Mizzaro 2012), e-governance
(hierarchical vs. flat). Lastly, Colombo and Buganza projects (Alam and Campbell 2013; Bhagwatwar and
(2013) distinguished between two types of intermedi- Desouza 2012; Poblet 2011) and crisis management
ary dimensions: (1) the competition architecture; and initiatives (Vivacqua and Borges 2012). Chen and
(2) the competence searching architecture. They also Liu (2012) identified which company operations can
tried to match intermediary architecture with the type be addressed effectively through crowdsourcing (i.e.
of problem, based on the four forms of crowdsourc- marketing, productivity, product/service innovation
ing proposed by Boudreau and Lakhani (2013): (1) and knowledge capture) and defined the preferred
contest; (2) collaborative communities; (3) comple- features of the crowd for each; and Whitla (2009)
mentors; and (4) labour market. specifically examined how companies are adopting
crowdsourcing to complete marketing-related tasks.
Moreover, since solvers need proper and thorough
Mapping the literature through the information about the problem if they are to un-
I–P–O framework derstand and solve it, the tasks should not be criti-
cal or confidential (Barbier et al. 2012; Nevo et al.
The literature on crowdsourcing is mapped in the sec- 2012).
tion below and discussed through the I–P–O frame- Another important variable relating to the problem
work. submitted is the knowledge that the crowd must have
for its members to be able to solve the task. This
knowledge should be codified (Pénin and Burger-
Input
Helmchen 2011), not be too specific (Barbier et al.
The first part of the framework concerns the type of 2012) and the seeker should not hinder this knowl-
problems/tasks to be faced in crowdsourcing initia- edge from being shared among the crowd (Afuah
tives. and Tucci 2012). Conley and Tosti-Kharas (2014)
have also argued, with reference to micro-tasks,
Problem/task. One of the main dimensions for clas- that anonymous, non-expert yet self-selected crowd-
sifying crowdsourcing projects is by type of request. sourced workers are as reliable and accurate as trained
These requests generally depend on three parameters: researchers.
(1) the required knowledge for solvers to participate
actively; (2) the typology; and (3) the structure of the
Process
problem.
In general terms, the task/problem should be sim- The second part of the framework deals with the
ple, easy to delineate, well-specified and modular themes of session management, knowledge manage-
(Afuah and Tucci 2012; Barbier et al. 2012; Nevo ment, people management and technology.


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350 A. Ghezzi et al.

Session management. The management of a crowd- winners in contests of this kind, and these show that
sourcing session is concerned with all the operations prize allocation can vary quite significantly and is
that the session managers have to perform in order to dependent on the contestants’ level of aversion to risk
coordinate and orchestrate the session. (e.g. Archak and Sundararajan 2009).
First, the problem statement needs to be defined. The award structure is generally fixed in crowd-
The seeker must present the solvers with a problem sourcing contests. The literature (e.g. Terwiesch and
that is clear and which all of them are able to under- Xu 2008; Wang et al. 2012), however, indicates that
stand (Feller et al. 2012; Pénin and Burger-Helmchen any inefficiency of the innovation contest resulting
2011; Sieg et al. 2010); if necessary, the problem must from the solvers’ underinvestment or low commit-
be split into simpler problems (Jain 2010; Sieg et al. ment can be reduced by changing the award structure
2010) and, as a last point, the problem must require an of the innovation contest from a fixed-price award to
answer that is non-ambiguous, easy to evaluate and to a performance-contingent award.
assimilate (Pénin and Burger-Helmchen 2011). While
the criteria for providing a solution should be as pre- Coordination mechanisms. These are useful for or-
cise as possible, thus limiting the solution space, the chestrating the solvers’ efforts, as well as for es-
problem statement should be general enough to avoid tablishing trusted relationships (Alam and Campbell
any partiality towards a particular solution path (Sieg 2013) based on the shared responsibility of building
et al. 2010). an open sourcing ecosystem (Ågerfalk and Fitzgerald
The intermediaries should be involved in guiding 2008).
the seeker in designing the problem statement (Feller Crowdsourcing intermediaries should ensure that
et al. 2012; Ye et al. 2012), helping them to select and there is a significant flow of proposals and sufficient
define the problem correctly. This process can engage interaction between the solvers (Alam and Campbell
the company’s internal scientists, and the problem 2013; Trompette et al. 2008). The session owners
must be made clear and explicit to solvers outside the should encourage both cooperation and competition
company (Sieg et al. 2010). between the solvers, since this strategy is likely to
The problem statement can contain suggestions and increase the quality of the submissions (Hutter et al.
prompts to improve the quality and creativity of the 2011). The members’ willingness to participate de-
ideas to be generated by the solvers. For instance, pends on the policies in place concerning the plat-
Morris et al. (2012) discussed how micro-task crowd- form’s mission, the economic rules in play and its
sourcing platforms can be affected by positive prim- underlying social principles. A good way to induce
ing, and Wang et al. (2013) showed how exposure involvement and engender sustainable performance
to an original idea led to a decrease in fluency (the is for the platform administrators to share their plat-
mental flow of ideas) and increase in the average orig- form policies with the participants (Trompette et al.
inality of the ideas generated by each participant. 2008).
Another key decision that must be made is whether Operations linked to coordination are of significant
the initiative to be crowdsourced should be set up importance in certain types of contests (e.g. crisis
as a collaboration (where the participants work to- management projects) (Barbier et al. 2012). Software
gether to achieved a shared valuable outcome) or a tools can be developed to assist the intermediaries in
competition/contest (where participants compete to terms of scheduling, pricing and quality control for
provide the finest solution and a subset of winners the ideas (Barowy et al. 2012); in crowdsourcing cri-
are awarded a prize) (Boudreau and Lakhani 2013). sis management projects, software tools can be used
When incentives are monetary, for a contest to be to identify any unmet requests or elaborate statistics
set in place successfully, a pricing strategy must be that help to identify hidden patterns, which can be
formulated and tasks allocated efficiently (Singer and determined by contributions deriving from other or-
Mittal 2013). In general, defining the prize is up to the ganizations (Barbier et al. 2012).
seeker. Some frameworks (Singer and Mittal 2013) A crowdsourcing session facilitator can be useful
and tools (Barowy et al. 2012; Karger et al. 2014) for monitoring the various subject threads (Stieger
contain crowdsourcing mechanisms and automated et al. 2012), for setting the project guidelines and
processes for pricing and allocating tasks designed driving the decision process (Jain 2010). The facilita-
with requesters operating in complex markets. tor can come with the platform or be part of the seeker
Studies have also been carried out to investigate company. In the latter case, the company should make
the optimal allocation of any prize money among the sure that internal management is committed to the


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Crowdsourcing 351

project (Ågerfalk and Fitzgerald 2008). It can also be be methods whereby techniques are used to aggregate
the case that the authority of the project leaders arises the ideas generated, which results in their being more
naturally from the bottom-up as a result of the actual highly creative (Yu and Nickerson 2011).
contribution that they make (Jain 2010). Solver brokerages can reinforce knowledge mobil-
Rules must be clear for all the members involved, ity, innovation appropriability and dynamic stability
and they can also take part in making and changing (Feller et al. 2010). In particular, the process of filter-
such rules. The procedures for discussing and voting ing the proposed solution is a major enabling factor
on important issues must also be defined (Jain 2010). to stimulate knowledge of an appropriate kind (Feller
Clear project milestones must be provided, along with et al. 2012). The intermediaries must, therefore, be
visibility with regard to inputs and elaboration on able to filter the proposals (Blohm et al. 2011b).
the data gathered, so as to ensure transparency and Although tools and practice for the ideas evalua-
create trust (Ågerfalk and Fitzgerald 2008). The set tion phase are crucial in open innovation contexts,
of relational mechanisms adopted tends to be more several organizations have no structured approach for
organic and informal than in other more traditional assessing the proposed ideas (Schulze et al. 2012a).
project settings (Alam and Campbell 2013). Idea management systems can be of assistance to
Finally, for session management to be effective, companies in these instances (Schulze et al. 2012a)
seekers have to develop new orchestration skills and and different methods for evaluating the quality of
also take on the role of ‘client’ within the process the results have been proposed (Blohm et al. 2011b;
(Nevo and Kotlarsky 2014); they must inspire learn- Corney et al. 2009). The choice of the most suitable
ing and creativity through feedback from profession- technique can depend on the type of task (e.g. numer-
als and experts (Kosonen et al. 2014; Zhu et al. 2014); ical analysis can be used for a crowdsourcing task
and set futuristic contexts in which ideas can be gen- where numerical results are produced, and discrete
erated (Graham and Mehmood 2014). value analysis where the task requires yes or no an-
swers). Other studies are concerned with analysing
Knowledge management. Crowdsourcing initia- how effective different techniques are in assessing
tives enable organizations to acquire knowledge both ideas. For instance, according to Blohm et al. (2011b),
from individual people and from other organizations. multi-criteria rating scales work better than prediction
It follows that knowledge management operations are markets in crowdsourcing initiatives.
important for gathering, organizing and exploiting the Various types of ideas assessment methods may
knowledge acquired. be used when designing these competitions, and in-
The ideas management process is crucial both dur- clude expert assessment, peer assessment and vox
ing the session and after the contest has concluded. populi assessment (Lampel et al. 2012). Regarding
Most literature relating to this topic proposes au- the last approach, we know that the public performs
tomated tools or algorithms to improve the quality well when assessing ideas within smart cities projects
of the results. Among these are Automan (Barowy (Schuurman et al. 2012). Some studies, however,
et al. 2012), MobileWorks (Kulkarni et al. 2012), the question the performance of crowdsourcing in the
VMW approach (Kern et al. 2011), a statistical model process of assessing ideas: while Bonabeau (2009)
for managing the correctness of human-based elec- found that there are advantages in assessing data
tronic services (Kern et al. 2012), and an algorithm through crowdsourcing, other studies conclude that
to detect spammers (Vuurens and de Vries 2012). collective intelligence is better at generating ideas
Since crowdsourcing initiatives are generally con- than at evaluating ideas.
ducted over the Internet, some studies are concerned Ad hoc metrics can be identified to evaluate the
with issues such as usability and the design of ad hoc ideas. One of the main problems of crowdsourcing
software tools; for instance, Riedl et al. (2010) have systems lies in the difficulty of identifying the dis-
proposed a tool to visualize and analyse new user- tinctive features of the ideas quickly and accurately,
generated ideas. Many other studies on IT tools for when these features are to be used later to make
crowdsourcing are presented in the various streams judgments about the proposed innovations (Westerski
of literature; however, these IT-specific studies are et al. 2012). Idea assessment metrics are employed
outside the scope of this review. in many studies, but these are restricted to evaluat-
Other methodologies can enhance the level of in- ing the effectiveness of the crowdsourcing contests.
novation within the ideas proposed, meaning that the Westerski et al. (2012) have, however, proposed a tax-
crowdsourcing contests are more effective. These can onomy for describing the characteristics of the ideas


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352 A. Ghezzi et al.

and the metrics for evaluating them in crowdsourcing It is known that the solvers’ past winning experi-
sessions. ence in crowd-rated contests is a prediction of future
The last topic in the knowledge management area success in these contests (Chen and Liu 2012; Yang
is the protection of the intellectual property (IP). This et al. 2011), although this finding is to some extent
is a critical and controversial issue – and one that controversial: Bayus (2013) has demonstrated that the
has already been dealt with in the open innovation solvers’ past success is negatively related to the num-
literature (see Harhoff et al. 2003) – because most ber of diverse ideas proposed and Hewing (2013) has
crowdsourcing sites set rules that protect the seekers’ stated that potential users are more useful when en-
rights far more strenuously than those of the solvers gaged in problem-finding than in problem-solving.
(Massanari 2012). Hence, IP can be a potential source The number of solvers involved is another critical
of conflict (Trompette et al. 2008). variable that affects the design of the pool. Adding
to the number of participants leads to a downward
Technologies. Several web tools can be used in shift in the quality of the outcomes, since solvers
crowdsourcing initiatives and include blogs, wikis all tend to reduce their own personal effort because
and social networks (Whitla 2009). In general terms, of the greater competition (Boudreau et al. 2011;
the intermediaries provide the seekers’ companies Terwiesch and Xu 2008). It is also true that a large
with a web platform together with an ad hoc fo- pool of solvers mitigates and potentially reverses
rum to handle the submission of proposals. Since the any negative impact on quality, especially in high-
amount of data to process is significant, data-mining uncertainty contests, because of what is known as the
techniques can be applied to the crowdsourced data ‘parallel path’ effect (Boudreau et al. 2011) and also
(Barbier et al. 2012). The seeker can make use of soft- because this can lead to more varied sets of solutions
ware tools concerned with the visualization of ideas (Terwiesch and Xu 2008).
(Riedl et al. 2010) and with crowd and knowledge There are also several software tools that seek-
management (Barowy et al. 2012; Kern et al. 2011; ers can use to find their potential ‘dream team’
Kulkarni et al. 2012; Vuurens and de Vries 2012) that of contributors on the basis of the required skills
both improve the quality of the results and simplify (Kulkarni et al. 2012) and the right network bringing
the associated governance functions. together other potential experts (Schall et al. 2012);
Mobile technologies allow users to make better use these tools, based on reputation mechanisms in col-
of their time and access the crowdsourcing platform laboration networks, can also be used to estimate the
anywhere and at any time. As a result, there has been relative importance of solvers (Schall 2012).
a surge in applications for mobile phones (Kulkarni Idea competitions draw in people encouraged by
et al. 2012; Liu et al. 2012; Rosen and Greve 2012). the incentives put in place or exploited by intermedi-
In general, these apps are within the sphere of ini- aries (Leimeister et al. 2009). The reasons for partic-
tiatives for smart cities (Chatzimilioudis et al. 2012), ipating can be intrinsic, which is when an individual
m-governance (Garcia et al. 2011; Poblet 2011) and joins the process without any external incentives, or
tourism (Liu et al. 2012). extrinsic, which is when external incentives come into
play and can include monetary rewards or recognition
People management. Most crowdsourcing initia- (Ryan and Deci 2000). Several reasons can be behind
tives are published as an open call and thus poten- the solvers’ decision to take part in a crowdsourc-
tially address anybody who wishes to join in. This ing contest (see Table 1) and numerous studies are
means that a wide and knowledgeable crowd can be taken up with identifying them (Ali Acar and van den
assembled. Sometimes, however, the pool of solvers Ende 2011; Hossain 2012; Rouse 2010; Tokarchuk
is selected, in order to guarantee targeted, high-quality et al. 2012; Zhao and Zhu 2014). Understanding the
solutions. solvers’ motivation can result in designing a better
The determination of the pool of solvers can depend system of incentives (Leimeister et al. 2009).
on a number of features, which include: the type of Although monetary rewards may seem the most
problem involved and solvers’ skills (e.g. a market- tempting form of incentive, studies show that they
ing challenge requires an external and highly diverse are not the only persuasive inducement and some-
crowd) (Erickson et al. 2012a); how the participants times can even be counterproductive (Huang et al.
performed in previous contests; and the current role 2012; Martinez and Walton 2014). In crowdsourcing
of the participants, who may be users/solvers or po- initiatives, intrinsic incentives are sometimes more
tential users (Hewing 2013). powerful in motivating the solvers (Battistella and


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Crowdsourcing 353

Table 1. Main intrinsic and extrinsic motivations of the participants A number of ways to incentivize and attract solvers
Motivations have been identified in the literature. For instance, in-
centives may be associated to game-based contests
Intrinsic motivations entrepreneurial mindset (Thaler et al. 2012), to promoting learning mecha-
opportunity to express individual
nisms (Kaikati and Kaikati 2013; Massanari 2012) to
creativity
caring community and attachment to the posting comments on the platform (Bayus 2013), or
group, sense of membership, ideology to designing engaging and interesting tasks/problems
enjoyment, fun and entertainment (Ebner et al. 2009; Schulze et al. 2012b).
psychological compensation and sense of Trust in the hosting company can also affect the
efficacy
solvers’ intentions in terms of sharing knowledge
social influence and social identity
exchange of information (Ebner et al. 2009) and can be stimulated through
sense of cooperation technology-based support and knowledge-based sup-
social search port (Kosonen et al. 2013).
sense of self worth
learning
Extrinsic motivations monetary rewards Output
reputation
recognition of the company The third and concluding part of our framework cov-
growth of professional status ers the output of a crowdsourcing initiative, concen-
career benefits trating on the solution/completed task and the seek-
reciprocity
ers’ and solvers’ benefits.
accountability and social capital
self-marketing
social motives Solution. The main output of a crowdsourcing ini-
learning tiative is generally either an innovative idea or the
completion of a micro-task. On the one hand, a wide
stream of literature shows that crowdsourcing pro-
Nonino 2012; Leimeister et al. 2009; Trompette et al. cesses generate users’ ideas that score highly in terms
2008; Zheng et al. 2011) and can often instigate more of novelty and customer benefit (Poetz and Schreier
substantial submissions (Frey et al. 2011). 2012). According to various studies, the collabora-
The way in which incentives are structured can tion with users through idea competitions enhances
affect the quality of the solutions substantially: in fact, the quality of the resulting ideas (Blohm et al. 2011a).
when seekers increase the rewards or offer additional The idea competition approach leads to good out-
incentives to attract more participants, this may lead puts even in terms of collecting data for person-
to submissions of a lower quality (Huang et al. 2012). alization purposes (Bernstein et al. 2010) and for
In general terms, crowdsourcing platforms of- information-retrieval operations such as assessing the
fer extrinsic incentives for outputs while, in some information’s relevance (Alonso and Mizzaro 2012).
crowdsourcing challenges, there are also incentives Other studies, on the other hand, show that a generic
linked to how actively people engage in the process crowdsourcing approach does not seem to be the way
(Majchrzak and Malhotra 2013; Malhotra and to generate ideas of very high quality (Rosen 2011;
Majchrzak 2014). Schuurman et al. 2012), especially since the solvers’
The incentive scheme can depend on: ideas are sometimes not very feasible. This means
that professionals are more likely to come up with
ideas that can be easily be developed into a mar-
r task/problem complexity (Sun et al. 2012; Zhao ket product (Huang et al. 2011; Poetz and Schreier
and Zhu 2012), since the complexity of the task 2012).
moderates the relationship between motivational While contributors from the crowd make more in-
factors and continuance intention (Sun et al. 2012) consistent judgments compared with those of experts,
r task/problem attributes (such as tacitness, the quality of the results overall increases if the results
analysability, variability and variety) (Zheng et al. produced by the single contributors are aggregated
2011) into one output (Vuurens and de Vries 2012).
r the innovation process phase – the more tangible
the results, the more the motivations used should Seekers’ and solvers’ benefits. Several benefits can
be extrinsic (Battistella and Nonino 2012). be identified for both the seekers and the solvers.


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354 A. Ghezzi et al.

Seekers’ benefits can refer to: who may even act positively against it, perceiving
the initiative as an additional burden on top of their
1. the knowledge that they have been able to ac- regular workload (Simula and Vuori 2012).
quire, or the tasks that have been performed and Another point to take into consideration is that
completed (Djelassi and Decoopman 2013; Huang these projects can act as a sort of recruitment tool,
et al. 2011; Poetz and Schreier 2012; Wang et al. allowing companies to find and potentially select
2013) new people to employ (Ebner et al. 2009). Finally,
2. their relationship with a growing network of differ- crowdsourcing initiatives can engender improvement
ent stakeholders that are in touch with the seeker’s in brand goodwill (Hammon and Hippner 2012; Wang
company through the crowdsourcing undertak- et al. 2013).
ing (Chesbrough 2012; Djelassi and Decoopman There are several reasons behind solvers decid-
2013; Pisano and Verganti 2008; Schenk and ing to join crowdsourcing contests. The most ob-
Guittard 2011) vious among the benefits for solvers is a monetary
3. the creation of an external ‘innovation and cre- reward (Battistella and Nonino 2012; Djelassi and
ativity’ process, as an alternative to the traditional Decoopman 2013; Lampel et al. 2012; Leimeister
innovation processes managed internally through et al. 2009; Zhao and Zhu 2012). However, it has
the company’s R&D department (Hammon and been shown in several studies that, for these partici-
Hippner 2012; Trompette et al. 2008; Pisano and pants, money is not the only or even the main incen-
Verganti 2008; Diener and Piller 2009). tive. Intangible, social motives are the most impor-
tant inducement and include peer appreciation and
Crowdsourcing initiatives make it possible to col- social identification (Battistella and Nonino 2012;
lect a wide range of innovative ideas (Chesbrough Lampel et al. 2012; Leimeister et al. 2009; Zhao and
2012; Djelassi and Decoopman 2013; Rosen 2011; Zhu 2012) and self-esteem (Djelassi and Decoopman
Wang et al. 2013) from a large and miscella- 2013). Many people can take part in these initiatives
neous crowd of solvers (Hammon and Hippner 2012; for fun or entertainment (Battistella and Nonino 2012;
Lampel et al. 2012; Wang et al. 2013), who are then Djelassi and Decoopman 2013). They are also aware
able to complete the required operations within a short that crowdsourcing sessions give them the potential
time and often at a much reduced cost (Lampel et al. to expand their skill base and knowledge (Lampel
2012; Rosen 2011; Whitla 2009; Ye and Kankan- et al. 2012; Leimeister et al. 2009). Solvers also see
halli 2015). Another interesting debate on the issue their participation in open source projects as a way
of capturing value through crowdsourcing processes to bring themselves to the attention of the companies
has emerged recently and is still under-investigated. involved, for the purpose of finding new job opportu-
Bloodgood (2013) argues that capturing value is at a nities (Leimeister et al. 2009).
‘disadvantage’ in crowdsourcing undertakings be- A deeper analysis of the solvers’ benefits, motiva-
cause, while crowdsourcing apparently increases the tions and incentives is set out in the section on people
leading company’s ability to solve problems, this type management (see Table 1). As is apparent in our pro-
of problem-solving seldom relates to capturing value cess view, crowd motivation has a direct impact on the
per se, thus creating little substantive increase in per- project’s outcomes and is of significant concern for
formance relative to its competitors. seekers and intermediaries. It is important for them
Crowdsourcing initiatives means that companies to address the topic of incentives in order to design a
can create or reinforce partnerships with other com- contest that will attract solvers and keep them active
panies (Chesbrough 2012; Wang et al. 2013) and also over time.
galvanize their links with their customers (Djelassi
and Decoopman 2013). If the company’s own employ-
ees take part in crowdsourcing contests (see Erickson Avenues for future research on
et al. 2012b), this can increase innovativeness within crowdsourcing
the organization and encourage a business culture in
which ideas are shared (Wang et al. 2013) and the In the previous section, we reviewed the extensive lit-
process can also stimulate the level of communication erature on crowdsourcing through the I–P–O frame-
between managers and their staff (Stieger et al. 2012). work. While the body of knowledge dealing with
It can also sometimes be the case that the crowdsourc- crowdsourcing is massive, there are still unsolved
ing project is not accepted by the seeker’s employees, issues requiring further research, which need to be


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Crowdsourcing 355

addressed in order to increase our understanding of intelligibility and the participation of solvers in the
this phenomenon. The process of investigating the dy- relative crowdsourcing session?
namics and mechanisms underlying crowdsourcing
Alongside formulating the innovation problem,
can also result in practical contributions, increasing
seekers using crowdsourcing to source ideas must
the effectiveness of this approach for organizations
also understand in which, among the possible fields
addressing innovation and the benefits for individu-
of application, is it worthwhile resorting to the crowd.
als taking part in these initiatives. In the light of this
Seekers may want the crowd to solve particular
consideration, we further discuss the main matters
innovation-type problems that relate to different ap-
arising from the literature review, following the I–
plication fields (e.g. Bonabeau 2009; Chen and Liu
P–O framework classification, in order to formulate
2012). Crowdsourcing may be more or less effec-
suggested research questions (SRQs) to be addressed
tive according to the specific field of application for
in further research.
that problem. Poetz and Schreier (2012) found that
crowd-produced solutions are valuable in the earlier
Input idea generation phase. This is indeed consistent with
One of the main issues in crowdsourcing is to define crowdsourcing being employed by companies such as
the structure of the innovation problems to be broad- General Electric (Chesbrough 2012) and Dell (Bayus
cast to the pool of solvers. Seekers need to formulate 2013). Some users have a thorough knowledge of
a number of acceptable trade-offs to structure a prob- the seeker’s final products and may suggest improve-
lem effectively. Seekers must first face several types of ments or new ways in which the products can be used
innovation-related problems and, in all likelihood, not that can bring positive benefits to the seeker (An-
all of them will be solved successfully by the crowd, torini et al. 2012; Von Hippel 1986). Seekers may
making it necessary to carry out an initial selection also find it useful to engage with solvers who have
(Boudreau and Lakhani 2013; Poetz and Schreier extensive knowledge in a specific domain, for help in
2012; Sieg et al. 2010; Terwiesch and Xu 2008). Sec- solving specific technical problems (Garavelli et al.
ond, innovation problems often need to be reframed 2013). Seekers make use of crowdsourcing in a va-
(especially when they are particularly complex), by, riety of applications. For instance, Procter & Gam-
for instance, splitting them into modular stand-alone ble has turned to crowdsourcing both to source raw
problems, making each easier for the crowd to solve ideas and to solve specific technical issues (Huston
(Natalicchio et al. 2014; Sieg et al. 2010). In this and Sakkab 2006). Nonetheless, there is currently no
phase, the problem as formulated may no longer be overarching understanding of the fields of applica-
strictly consistent with the starting point innovation tion where crowdsourcing is a valuable approach to
problem, with the risk of making the crowdsourcing adopt, or the conditions that can help to increase the
process less effective as a whole (Afuah and Tucci effectiveness of this method. Therefore, we pose the
2012). Third, seekers must make sure that the inno- following research question [Correction added on 31
vation problem can be understood clearly, by pro- January 2017 after first online publication: texts from
viding the solvers with enough information (Afuah the “Input” section were inadvertently removed and
and Tucci 2012), while carefully avoiding unneces- have now been added in this version]:
sary constraints that can restrict their creativity (Sieg
SRQ2: In which fields of application and under
et al. 2010) and simultaneously not disclosing confi- which conditions do seekers gain the greatest ad-
dential information (Barbier et al. 2012; Nevo et al. vantages from using crowdsourcing?
2012). Finally, innovation problems should, naturally,
be relevant for the seeker, but they also have to be
affordable, challenging and of interest to the solvers, Process
to ensure that solutions are submitted (Sieg et al. In general, crowdsourcing sessions are supervised by
2010). Although trade-offs of this type have a place platform managers who carry out crucial operations
in determining whether seekers actually make use of critical to the success of the whole process. Platform
crowdsourcing, so far, there are no studies on inves- managers are responsible for selecting the innovation
tigating how to solve them concurrently. Hence, we problem to be broadcast to the crowd and for prepar-
suggest the following research question: ing the relative statement (Feller et al. 2012; Pénin and
SRQ1: How can an innovation problem be structured Burger-Helmchen 2011; Sieg et al. 2010). As well
so as to increase simultaneously its solvability, its as defining the problem, platform managers set the


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356 A. Ghezzi et al.

award for the best solution received, a process that in- with their peers and share ideas and insights, in order
volves understanding and capitalizing on the reasons to improve the quality of the ideas submitted (Blohm
why solvers wish to be involved, as this increases et al. 2011a; Hutter et al. 2011). Despite the critical
the quality of the submissions (Frey et al. 2011; importance of structuring a crowdsourcing session
Terwiesch and Xu 2008; Wang et al. 2012). During the correctly, little attention is spent in the extant liter-
session, platform managers should make sure that the ature on making a comparison between the benefits
intelligence of the innovation problem is spread ap- offered to the seekers by the different formats un-
propriately, that solvers participate constructively and der differing conditions. We, therefore, propose the
that the solvers interact in a correct manner (Alam and following research question:
Campbell 2013; Hutter et al. 2011; Trompette et al. SRQ4: In which scenarios do the different crowd-
2008). Platform managers must ensure that the seek- sourcing session formats provide the seekers with
ers’ relationship with the solvers is fair, by establish- the greatest benefits?
ing direct and loyal interaction (Gebauer et al. 2013).
It may be very challenging for platform managers to Seekers collect a number of ideas from the pool of
control these complex activities correctly, they have solvers through crowdsourcing sessions. Knowledge
to define the rules specific to the case and possess management practice becomes, therefore, particu-
the proper skills and capabilities. While the use of larly significant in this process. One of the main
governance mechanisms in crowdsourcing has been sources of conflict in crowdsourcing is managing the
discussed in the literature (e.g. Hutter et al. 2011; Jain solvers’ IP (Trompette et al. 2008). Since IP provided
2010), there are, so far, no studies with a focus on the by solvers under the form of solutions is an intangible
individual level that examine the skills and expertise asset, crowdsourcing initiatives are affected by what is
needed for platform managers to make a success of known as Arrow’s information paradox (Arrow 1962).
crowdsourcing for both seekers and solvers. Our third The seeker needs to understand the solutions pro-
research question is, therefore, formulated as: vided by owners clearly and in full, in order to assess
accurately whether they are suitable for solving the
SRQ3: Which skills and capabilities must platform innovation problem. This leads to the risk, however,
managers master to ensure the success of the crowd- that the seeker can misappropriate the solutions pro-
sourcing session? vided, without rewarding the solvers. To disentangle
One of the first decisions that seekers must make con- this paradox, it is necessary to put clear rules in place
cerns the way in which the crowdsourcing session is to ensure that the solvers’ IP rights are managed fairly
structured and, specifically, whether it should take the (Garavelli et al. 2013). This is especially true when the
form of a contest or a collaboration (Boudreau and ideas developed by the solvers are still raw and cannot
Lakhani 2013). In contests, individuals or teams work be protected through mechanism such as patents
to produce the best possible solution for the seeker. (Natalicchio et al. 2014). The seekers’ rights are,
Being in competition with each other means that the nevertheless, protected more under current crowd-
different solvers and/or teams of solvers tap into their sourcing rules than those of the solvers’ (Massanari
own expertise and skills to develop their solutions 2012). The danger in this situation is that solvers
and, consequently, develop several types of solutions may no longer pass on their ideas to the seekers,
(Terwiesch and Xu 2008). Owing to the ‘parallel path’ determining a failure for that crowdsourcing session.
effect, it is possible to find one among the possi- It follows that IP management should be carefully
ble solutions that is extremely valuable (Boudreau defined by rules and policies. Accordingly, we pose
et al. 2011). In collaborative work, in contrast, peo- the fifth research question:
ple build on each other’s skills and work to develop SRQ5: Which rules and policies should be adopted
an idea in common (Levine and Prietula 2014). In to manage IP rights connected to the submitted so-
a collaboration, solvers disclose their ideas freely lutions in a fair manner?
to the other members, who in turn reciprocate with
their own ideas, all leading to an improved solution
Output
for the seeker (Boudreau and Lakhani 2013). Either
format can be applied successfully in practice (Frey Once the seeking organization selects the best idea
et al. 2011). There is a possible third hybrid structure from among those submitted by solvers, it should
where owners compete against each other in solving integrate that solution within its innovation processes.
the problem, yet are also allowed to communicate Several issues may emerge at this point. Externally


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Crowdsourcing 357

sourced ideas can often be less feasible than those able results from a crowdsourcing session. While the
developed by professionals, since the crowd has no literature contains some empirical evidence on the
in-depth knowledge of the seeking organization’s in- techniques used in crowdsourcing platforms to ag-
ternal operations or cost structure (Huang et al. 2011, gregate the results of micro-tasks (Luz et al. 2015),
2014). In addition, the employees of the seeking orga- there are no systematic studies on how this activity
nization may suffer from the ‘not-invented here’ syn- can be performed effectively and how one technique
drome (Katz and Allen 1982) and thus only use ex- may be more appropriate than another in specific ap-
ternally developed knowledge reluctantly (Lüttgens plications. As a consequence, we propose the seventh
et al. 2014). Seekers may not have the proper proce- research question:
dures to manage the transfer of IP rights effectively, SRQ7: How can the friction that emerges when seek-
with the result that there are barriers to acquiring the ers aggregate micro-tasks accomplished by different
solvers’ solutions (Garavelli et al. 2013; Marjanovic individuals be overcome in an effective manner?
et al. 2012). Furthermore, seekers taking possession
According to the extant literature, if more solvers
of external knowledge should develop a high absorp-
take part in the crowdsourcing session, this is ben-
tive capacity in order to assimilate externally devel-
eficial for seekers because of the ‘parallel path’
oped ideas and exploit them (Cohen and Levinthal
effect (Boudreau Lacetera and Lakhani 2011).
1990; Zahra and George 2002) and this is particularly
Crowdsourcing platforms are similar to two-sided
relevant in the case of ideas founded in knowledge do-
markets (Chesbrough 2006), inasmuch as increasing
mains distant from the seeker’s knowledge base (Na-
the number of solvers on the one side improves the
talicchio et al. 2014). Consequently, the seeker needs
value of participating for both seekers and solvers
to develop specific capabilities and mechanisms to in-
(Eisenmann et al. 2006). It follows that it is desirable
tegrate the selected solutions and ensure that crowd-
for the participation rate in crowdsourcing initiatives
sourcing is effective. Nonetheless, there are, to the
to be high. The motivation driving solvers to partic-
best of our knowledge, no investigations about the
ipate in crowdsourcing sessions has been discussed
follow-up of crowdsourcing sessions in the literature.
in previous sections and can, essentially, be split into
Studies of this kind could radically increase the use-
intrinsic motivation, when an activity is performed
fulness of crowdsourcing for organizations, and we
for its own sake, and extrinsic motivation, when an
thus suggest the following research question:
activity is executed for a reward (Frey et al. 2011;
SRQ6: Which capabilities and mechanisms can en- Ryan and Deci 2000). Therefore, crowdsourcing ses-
hance the effective integration of the solvers’ ideas sion managers should try to increase participation
within the seekers’ innovative processes? by exploiting the solvers’ motivation. Previous stud-
ies have shown that intrinsic and extrinsic motivation
As stated in the previous sections, the outcome of
may have different effects on the quality of the submit-
a crowdsourcing session can be an idea or how to
ted solutions (Boudreau et al. 2011; Frey et al. 2011),
execute a micro-task, this being one part of a more
but there has been no thorough investigation into the
complex task and performed by people in a matter
practices that can help to act on intrinsic and extrin-
of minutes (Morris et al. 2012). These are, gener-
sic motivation to draw in participation from specific
ally, tasks that are difficult to be executed through
types of solvers. Therefore, we pose the following
computer programs, while being trivial for human be-
final research question:
ings, since they involve natural actions such as draw-
ing, coding, interpreting shapes and labelling images SRQ8: Which practices allow seekers to draw on the
(Yuen et al. 2011). In this case, however, the tasks solvers’ intrinsic and extrinsic motivation to increase
their participation in crowdsourcing sessions?
are performed by a pool of individuals, with their dif-
ferent skills and capabilities, who have self-selected
themselves (Geiger and Schader 2014). Moreover, the Conclusions
same micro-task is often assigned to several different
individuals, as the results can then be of a higher qual- Over the last decade, crowdsourcing has been emerg-
ity (Yuen et al. 2011). Seekers must then merge the ing as a satisfactory practice for use by organizations
many submissions for the same micro-task, as well wishing to source new ideas and solutions to micro-
as integrate the results of all the micro-tasks for the tasks from the crowd. In parallel with the spread-
main initial task to be completed (Luz et al. 2015). ing of this practice among innovative organizations,
This is another critical operation for obtaining valu- scholars have been increasingly keen to investigate


C 2017 British Academy of Management and John Wiley & Sons Ltd.
358 A. Ghezzi et al.

crowdsourcing, as shown by the number of relevant criteria, can possibly reduce the limitations. Secondly,
papers published since 2006. From a theoretical point the I–P–O framework may suggest that there is a lin-
of view, crowdsourcing can be seen as both an open in- ear and one-directional causal relationship between
novation practice and a co-creation support tool. Re- the building blocks. It is clear, however, as suggested
search on crowdsourcing, especially during its early in theories such as that of structuration, that human
developmental phase, has been evolving along mul- action changes social structures and this can lead to
tiple theoretical fields, crossing a variety of manage- feedback effects. This potential weakness of the I–P–
ment disciplines, even when there was no strong the- O should be carefully assessed in studies where the
oretical foundation. Nowadays, we can observe the aim is to investigate causality relationships among
high diffusion of crowdsourcing studies where many the blocks. Thirdly, although the multi-step review
different perspectives are adopted, although this very methodology was rigorous, there may be some sort
characteristic of the research stream to provide many of ‘observer bias’ in selecting the articles: this lim-
different perspectives also indicates the lack of a itation should be attenuated by the breadth of the
global and comprehensive view. The aim of this re- final database of articles reviewed. Fourthly, the de-
view is to provide a formal structure for the findings liberate choice of excluding tangential research fields
available in the academic literature, which, to the best (e.g. crowdfunding) and focus on the literature under
of our knowledge, is still missing in the literature. We scrutiny may have determined the loss of collateral
also intend to suggest avenues for further research, in information, leaving room for future extensions to
order to increase our understanding of crowdsourcing. this review.
In detail, we adopted the I–P–O framework as the In conclusion, our study contributes to manage-
perspective from which to discuss the extant litera- ment research by providing a thorough understand-
ture, since the process perspective is helpful for inte- ing of the extant research on crowdsourcing, with
grating different contributions spanning over several a specific framework to structure and integrate the
theoretical fields. Using the I–P–O framework, we findings of studies on crowdsourcing through multi-
were also able to discuss the main antecedents, com- ple theoretical lenses. Additionally, the review of the
ponents and outcomes of the crowdsourcing process. literature also allowed us to deduce eight suggested
As a result of this discussion, we are offering an research questions. These can potentially be the start-
angle for interpreting the extant knowledge and di- ing point for filling the gaps in knowledge in literature
recting future research, achieved by developing a set dealing with crowdsourcing and, as a consequence,
of suggested research questions. These SRQs possibly increase understanding of this approach more com-
anticipate how the narrative within the crowdsourc- prehensively, with the objective of strengthening the
ing literature can evolve over time, to bridge the cur- efforts made by practitioners to harness the innova-
rent limitations found in literature and move towards tion power of the crowd.
greater consistency and relevance of the findings – as
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