Over the last years more and more companies have opened up their corporate boundaries and have built their business model upon the crowd. The creation of a crowdsourcing platform is a challenging endeavor, because on the one hand the crowd needs to be involved in the value creation process. On the other hand, to successfully keep them on the platform, the crowd needs also to be involved in the value capture process. To identify the main challenges a crowdsourcing platform needs to overcome in order to scale effectively, qualitative interviews with platform managers and founders, experts and platform participants were conducted. The results illustrate that the most important factors concering successful scaling are platform infrastructure, communication and community management.
Table of Content
1. Introduction
1.1 Problem definition
1.2 Method
1.3 Contribution
1.4 Structure
2. Theoretical foundation on the value creation and value capture process of crowdsourcing platforms
2.1 Open innovation
2.2 Three core processes in open innovation
2.2.1 Outside-in process
2.2.2 Inside-out process
2.2.3 Coupled process
2.3 Crowdsourcing
2.3.1 Different types of crowdsourcing
2.3.2 User motivation
2.3.3 Crowdsourcing based business models
2.3.3 The value creation process
2.4 Scaling crowdsourcing platforms
2.4.1 Why scale matters
2.4.2 Challenges during creation
2.4.3 Ongoing challenges
3. Empirical analysis on scaling crowdsourcing platforms effectively
3.1 Research approach
3.2 Research findings
3.2.1 Understanding of scaling
3.2.2 Critical mass and chicken & egg problem
3.2.3 Lack of quality of core value unit
3.2.4 Lack of motivation and engagement
3.2.5 Paths to scale crowdsourcing platforms
3.2.6 Lessons learned
3.2.7 Limits of scaling
4. Conclusion
4.1 Theoretical implications
4.2 Managerial implications
4.2.1 Create platform awareness
4.2.2 Provide technological infrastructure
4.2.3 Create platform activity
4.2.4 Involve top creators
4.2.5 Refresh your community
4.2.6 Deploy community for quality control
4.2.7 Educate your crowd
4.2.8 Encourage desired crowd behavior
4.2.9 Award the crowd
4.2.10 Create a strong community culture
4.2.11 Main challenges for crowdsourcing platforms
4.3 Limitations and outlook
Research Objectives & Key Themes
The primary objective of this thesis is to identify the core challenges crowdsourcing platforms encounter during their evolution and to define effective strategies for scaling these platforms. The research addresses how platform owners can successfully manage value creation and value capture by integrating the crowd, ultimately providing strategic guidance for sustaining growth in competitive environments.
- Mechanisms for scaling value creation and value capture in crowdsourcing models.
- Identification of primary challenges such as the critical mass problem, quality management, and user motivation.
- Strategic pathways and lessons learned from both successful and failed platform cases.
- Managerial frameworks for infrastructure development and community management.
Excerpt from the Thesis
1.1 Problem definition
To be innovative is vital for every business, because it allows companies to grow and can be defined as a key to success. Therefore, companies strive to gain advantages by being innovative. In the past, new innovations were linked with large internal Research and Development (R&D) labs, operated by companies like IBM. Nevertheless, due to increasing development costs, lack of resources and shorter innovation cycles, this has changed and companies now rely on open innovation models to gain competitive advantage over their rivals. The open innovation model allows companies to include external ideas for their own innovation process (Chesbrough, 2003). A good example is the lead user approach, introduced by von Hippel (1986). This approach allows companies to successfully test new technologies or innovations and to establish collaborative teams, by integrating the users and customers actively into the innovation process.
One interesting method to benefit from external developed ideas is the crowdsourcing approach. In the literature, crowdsourcing is described as an umbrella term, because it consists of several different approaches including contests and competitions that are organized as an open call (Ren & Levina, 2010). The idea behind the crowdsourcing approach is to leverage tasks performed by the company internally to external crowd workers. The crowd can be appointed to develop new technologies, create new designs and logos, solve IT-problems or participants can help to analyze and categorize large amounts of data (Jahnke & Prilla, 2008).
On the one hand crowdsourcing offers companies the possibility to accelerate innovation. Furthermore, problems can be solved faster and fewer resources are needed. On the other hand, crowdsourcing offers innovative people, who lack resources to develop and implement their own ideas, the possibility to realize their ideas (Brabham, 2008; Vukovic, 2009).
Summary of Chapters
1. Introduction: This chapter defines the research problem, emphasizing the shift from closed innovation to open innovation models, and introduces the research methodology and contribution.
2. Theoretical foundation on the value creation and value capture process of crowdsourcing platforms: This section covers the conceptual framework of open innovation, defines crowdsourcing and its types, and discusses the importance of scaling for business model success.
3. Empirical analysis on scaling crowdsourcing platforms effectively: This chapter presents the research approach and the findings gathered from qualitative interviews with managers, experts, and participants, highlighting the main scaling challenges and solutions.
4. Conclusion: The final chapter summarizes the theoretical and managerial implications, addressing how to foster scaling through infrastructure, communication, and community management, and outlines limitations and future research directions.
Key Keywords
Crowdsourcing, Open Innovation, Platform Scaling, Value Creation, Value Capture, Critical Mass, User Motivation, Community Management, Platform Infrastructure, Business Models, Qualitative Research, Knowledge Transfer, Network Effects, Innovation Strategy, Collaborative Innovation.
Frequently Asked Questions
What is the core focus of this thesis?
The thesis explores how crowdsourcing platforms can effectively scale their business models while sustaining value creation and value capture by integrating the crowd into their operations.
What are the central thematic areas?
The core themes include open innovation processes, the mechanics of crowdsourcing, identifying barriers to scaling (such as the critical mass problem), and the role of user motivation and engagement.
What is the primary research question?
The work seeks to determine the main challenges to scaling crowdsourcing platforms and identify the pathways and strategies that enable platform owners to overcome these hurdles effectively.
Which scientific methodology is applied?
The author uses a qualitative research design, primarily conducting semi-structured interviews with platform managers, founders, experts, and crowd participants to gain in-depth, empirical insights.
What topics are discussed in the main body?
The main body investigates the theoretical foundations of open innovation, provides a detailed analysis of crowdsourcing types and motivations, and analyzes empirical findings concerning scaling strategies and lessons learned.
Which keywords characterize this work?
Key terms include Crowdsourcing, Open Innovation, Platform Scaling, Value Creation, User Motivation, and Community Management.
How does the author define "scaling" in this context?
Scaling is defined as the ability of a platform to grow and increase its impact—specifically through an exponential increase in community activity—without requiring a commensurate increase in internal corporate resources.
Why is the "critical mass" problem so significant for these platforms?
It is significant because platforms function as marketplaces; without a sufficient number of participants on both the supply (creators) and demand (clients) sides, the platform fails to generate enough interactions to be sustainable.
How do extrinsic and intrinsic motivations differ in this study?
Extrinsic motivation relates to external rewards like financial compensation or prize money, whereas intrinsic motivation encompasses internal drivers like passion, commitment to a brand, or the desire for recognition and social interaction.
What is the role of the "core value unit"?
The core value unit represents the output produced by the crowd (e.g., a design, a code snippet, or a solved problem). Ensuring the high quality of this unit is essential for long-term platform viability and reputation.
- Arbeit zitieren
- Florian Mader (Autor:in), 2016, Scaling crowdsourcing platforms: How to expand and sustain value creation and value capture with crowds, München, GRIN Verlag, https://www.grin.com/document/342674
