Creativity Contests: An Experimental Investigation of Eliciting Employee Creativity

Abstract

Running a contest can help managers elicit creative ideas from employees by providing employees with incentives to develop and share ideas that will help the firm. Little is known, however, about how contest design affects the outcomes of subjectively evaluated creativity-based contests. We conduct an experiment to investigate the impact of two contest design choices, the job role of the contest’s evaluator and the number of prizes that participants compete for, on employee participation behavior. We also examine how these contest design choices impact the creativity of the submitted ideas. We find that using a peer of the employees as an evaluator increases the number of ideas shared, but it does not impact the number of unique participants who enter the contest. In addition, we find that using peer evaluators leads to an increase in the creativity of the ideas. We find that awarding more prizes to participants does not increase overall participation, but it does increase the number of ideas shared by employees from under-represented demographics. Awarding more prizes, however, reduces the creativity of the ideas. Together these results show that contest design choices have an important impact on employee creative idea-sharing and that managers should carefully consider how to tailor contests to fit their firms’ needs.

Keywords: Creativity, Contests, Tournaments, Management Control System Design, Subjective Evaluation

JEL Classification: J33, M40, M41, M52, O31