CROWDSOURCING A SOURCE OF VALUE CO-CREATION: ADOPTION, MECHANISM AND ITS IMPACT ON ORGANIZATIONS

Abstract

In today's rapidly evolving business landscape, organizations increasingly turn to crowdsourcing as a strategic innovation and value creation approach. Crowdsourcing, which involves harnessing the collective intelligence and creativity of a diverse group of external stakeholders, offers immense potential for organizations seeking to enhance their innovation competence and competitive advantage. However, despite its growing popularity and adoption, there remains a need for comprehensive research to understand the intricacies of crowdsourcing initiatives, their impact on organizational processes, and their implications for innovation outcomes. This thesis addresses this research gap by exploring the multifaceted dynamics of crowdsourcing and its implications for organizational innovation competence. Grounded in social capital theory, organizational learning models, and innovation management literature, the research investigates the interplay between crowdsourcing based social linkages, internal organizational practices, and innovation outcomes. Through a systematic exploration spanning seven chapters, the thesis aims to provide a holistic understanding of how organizations can strategically leverage crowdsourcing to drive innovation and value co-creation. The research problem at the core of this thesis revolves around unraveling the complexities of crowdsourcing initiatives and their impact on organizational innovation competence. Drawing on a multidisciplinary approach, the thesis delves into various theoretical perspectives, including open innovation, social capital theory, and absorptive capacity, to develop a conceptual framework that elucidates the underlying mechanisms driving crowdsourcing adoption, design, and outcomes. The thesis adopts a mixed-methods approach, combining qualitative and quantitative techniques to explore different facets of crowdsourcing. Qualitative methods such as literature review, morphological analysis, and case examples are employed to develop theoretical insights and conceptual frameworks. In contrast, quantitative methods such as surveys and structural equation modeling are used to test hypotheses and validate theoretical propositions. The results reveal several key insights into the relationship between crowdsourcing and organizational innovation competence. Firstly, the research identifies the critical determinants of crowdsourcing adoption, highlighting the role of organizational readiness, top management support, and perceived benefits in shaping organizations' propensity to engage in crowdsourcing initiatives. Secondly, the thesis explores the strategic design principles for effective crowdsourcing implementation, emphasizing the importance of aligning crowdsourcing initiatives with organizational goals, leveraging technology platforms, and fostering collaborative networks. Thirdly, the study examines the mechanisms for value co-creation through crowdsourcing, emphasizing the mediating role of knowledge transfer effectiveness and absorptive capacity in driving innovation outcomes. Lastly, the research investigates the impact of crowdsourcing on innovation competence, highlighting the significance of internal organizational practices such as knowledge sharing, learning orientation, and organizational culture in facilitating successful crowdsourcing initiatives. The main contribution of this study is manifold. Practically, the findings offer valuable insights for managers and practitioners seeking to harness crowdsourcing for innovation and value co-creation. By understanding the determinants of crowdsourcing adoption, organizations can develop targeted strategies to leverage external networks and resources effectively. Additionally, the strategic framework for designing crowdsourcing initiatives provides a practical guide for organizations aiming to enhance their innovation capabilities through crowdsourcing. Moreover, the insights into the value co-creation mechanism of crowdsourcing highlight the importance of building social linkages, fostering knowledge transfer, and developing absorptive capacity within organizations. For future research, several directions emerge from this study. Firstly, there is a need for further exploration of the specific strategies and mechanisms organizations employ to enhance internal practices, such as knowledge transfer effectiveness and absorptive capacity in crowdsourcing. Additionally, comparative analyses across different economic contexts and regulatory environments could shed light on the contextual factors influencing the effectiveness of crowdsourcing initiatives. Longitudinal research designs and experimental methodologies could provide more substantial vii evidence of causality and offer insights into the dynamic relationship between crowdsourcing and innovation outcomes. Moreover, extending the investigation to explore the spillover effects of crowdsourcing initiatives on broader innovation ecosystems could provide valuable insights for policymakers and industry stakeholders. Therefore, the thesis advances the scholarly understanding of crowdsourcing as a transformative force in innovation management. By elucidating the complex interplay between crowdsourcing-based social linkages, internal organizational practices, and innovation outcomes, the research offers valuable insights for both scholars and practitioners. The holistic framework developed in this thesis provides a roadmap for organizations seeking to harness crowdsourcing effectively and drive sustainable innovation and competitive advantage in ever-changing business landscape.