Problem-Solving Effort and Success in Innovation Contests: The Role of National Wealth and National Culture

Journal of Operations Management, 36, 2014

35 Pages Posted: 11 Mar 2018

See all articles by Jesse Bockstedt

Jesse Bockstedt

University of Arizona - Department of Management Information Systems

Cheryl Druehl

George Mason University - Department of Information Systems and Operations Management

Anant Mishra

University of Minnesota - Twin Cities - Carlson School of Management

Date Written: December 1, 2014

Abstract

Innovation contests allow firms to harness specialized skills and services from globally dispersed participants for solutions to business problems. Such contests provide a rich setting for Operations Management (OM) scholars to explore problem solving in global labor markets as firms continue to unbundle their innovation value chains. In this study, we examine the implications of specific types of diversity in innovation contests on problem-solving effort and success. First, we conceptualize diversity among contestants in terms of national wealth (measured as Gross Domestic Product per capita (GDPP) adjusted for purchasing power parity) and national culture (measured using the culture dimensions of performance orientation and uncertainty avoidance) and examine how such factors influence problem-solving effort. Next, we examine how differences between contestants and contest holders in terms of the above factors influence contest outcomes. Using data from a popular online innovation contest platform and country-level archival data, we find that contestants from countries with lower levels of GDPP are more likely to exert greater problem-solving effort compared to other contestants. With regards to national culture, we find that performance orientation and uncertainty avoidance have positive and negative effects, respectively, each of which weakens with increasing levels of GDPP. Finally, our analysis provides evidence of homophily effects indicating that contestants who share greater similarities with the contest holder in terms of national wealth and national culture are more likely to be successful in a contest. We discuss the implications of the study’s findings for contest holders and platform owners who organize innovation contests, and for emerging research on innovation contests.

Keywords: Innovation Contests, Problem Solving, National Culture, Crowdsourcing, Econometric Analysis

Suggested Citation

Bockstedt, Jesse and Druehl, Cheryl and Mishra, Anant, Problem-Solving Effort and Success in Innovation Contests: The Role of National Wealth and National Culture (December 1, 2014). Journal of Operations Management, 36, 2014, Available at SSRN: https://ssrn.com/abstract=3135639

Jesse Bockstedt

University of Arizona - Department of Management Information Systems ( email )

AZ
United States

Cheryl Druehl

George Mason University - Department of Information Systems and Operations Management ( email )

4400 University Drive
Fairfax, VA 22030
United States

Anant Mishra (Contact Author)

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

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