9.15 Wisdom of the Crowds
(Grewal, Lilien, and Mallapragada 2006) Network Embeddedness and Open Source Project Success
Background:
Open source environments, where software development relies on a community-driven model, are emerging as credible alternatives to conventional, firm-based models of software development.
Within open source environments, the relationships (or network connections) between projects and developers play a crucial role.
Research Objective:
This study aims to explore the concept of network embeddedness, which refers to the nature of interconnections among projects and developers.
The goal is to determine how various degrees and types of network embeddedness impact the success of open source projects.
Methodology:
The research highlights the existence of significant variability in how open source projects and their managers are embedded in networks.
The study employs both visual depictions of the affiliation networks and rigorous statistical analysis to:
Demonstrate this variability.
Investigate the differing network structures across various projects and their managers.
A latent class regression analysis is applied to uncover distinct regimes or patterns within the data.
Key Findings:
Network embeddedness exerts a profound influence on both the technical and commercial outcomes of projects. However, these influences are intricate.
Multiple patterns or regimes of effects are detected. In some of these regimes, network embeddedness promotes project success, while in others, it may be detrimental.
Project age and the number of page views offer additional insights into how network embeddedness might steer project outcomes.
(Mallapragada, Grewal, and Lilien 2012) User-generated open source products: Founder’s social capital and time to product release
Context:
Open source products are developed using collaborative Internet technologies, often by volunteer users.
The timeframe to product release is a key metric for the success of such projects.
Open source communities are often bifurcated:
Developer Users: Contribute to product development.
End Users: Collaborative testers providing feedback.
Core Propositions:
The study explores the influence of:
The position of project founders within the developer users’ social network.
The dynamics between developer users and end users.
Certain project and product attributes.
The central aim is to understand how these factors impact the time taken for product release.
Methodology:
Hypotheses are developed, informed by the two-community structure of the open source space.
Data from 817 development projects on SourceForge, a notable open source platform, is used.
A split hazard model is employed to assess the hypotheses.
Core Findings:
Results affirm the dual-community concept.
A founder’s significant position in the developer user community can expedite product release by up to 31%.
Projects where end users are highly engaged tend to witness an 11% reduction in release time compared to less engaged projects.
(Mahr, Rindfleisch, and J Slotegraaf 2015) Crowdsourcing and Problem-Solving Styles
Context:
Surge in firms leveraging crowdsourcing platforms for innovation-related challenges.
Mixed results from crowdsourcing due to limited successful contributions from external experts.
Research Objective:
- Understand why certain external solvers are more successful than others in crowdsourcing contexts.
Theoretical Framework:
- Dual-Processing Theory: Analyzes two distinct cognitive processes in decision-making.
Methodology:
- Combination of survey and archival data.
Problem-Solving Styles Investigated:
Creative Style: Spontaneous and intuitive.
Deliberate Style: Systematic and analytical.
Key Findings:
Both creative and deliberate styles can lead to successful problem-solving, but their effectiveness varies based on two key conditions:
Contextual Familiarity: Understanding of the problem’s context.
Time Investment: The duration spent on crafting a solution.
Creative Style: More effective under high contextual familiarity and shorter time investments.
Deliberate Style: More effective under low contextual familiarity and longer time investments.
Using both styles simultaneously results in decreased problem-solving success.
(Herd, Mallapragada, and Narayan 2022) Backer Affiliations Effects on Crowdfunding Success?
Context: The rise of crowdfunding as a tool to raise funds for entrepreneurial ventures.
Focus: Examining how affiliations (backers funding the same idea) on crowdfunding platforms affect funding behavior.
Core Findings:
Increased total number of backers has a positive effect on funding.
Affiliation among backers negatively impacts:
Funding amounts.
Overall funding success.
When affiliated others fund an idea, potential backers may feel less inclined to fund due to “vicarious moral licensing.”
Data Source:
- Data from 2,021 ideas on a major crowdfunding platform.
Moderators:
- Creator engagement (description & updates) and backer engagement (Facebook shares) reduce the negative effect of affiliation.
Robustness:
- Effect remains consistent across various instrumental variables, model types, measures of affiliation, and crowdfunding outcomes.
Additional Evidence:
- Three experiments, a survey, and interviews validate the negative effect of affiliation and its explanation through vicarious moral licensing.
Practical Implications:
- Creators can counteract negative effects of affiliation through specific language in descriptions and updates.