Hierarchical Distance and Idea Evaluation in Enterprise Crowdfunding

Michael Zaggl, Tim Schweisfurth, Claus Schoettl, Christina Raasch

Publikation: Bidrag til tidsskriftKonferenceartikelForskningpeer review

Resumé

In order to innovate, organizations need to select the best ideas for implementation. Research shows that idea selection suffers from biases, but fails to consider hierarchy as a potential source of bias. We examine how the hierarchical distance between an idea's creator and its evaluator affects the evaluation outcomes and advance three competing theoretical predictions based on homophily, competition, and status. These predictions are tested in a unique dataset an enterprise crowdfunding initiative where 265 employees evaluated 77 ideas by allocating corporate funds, resulting in 20,405 evaluation dyads. We find that idea evaluations are more favorable if the idea creator is hierarchically close to the evaluator, supporting the homophily perspective. Idea novelty amplifies this relationship, suggesting that greater uncertainty increases the propensity for social evaluations. Our findings are robust to various specifications. We contribute to the literature on idea evaluation and inform the design of idea selection processes in organizations.

OriginalsprogEngelsk
TidsskriftProceedings of the International Conference on Information Systems
StatusUdgivet - 2018
BegivenhedInternational Conference on Information Systems 2018 - San Francisco, USA
Varighed: 13. dec. 201816. dec. 2018

Konference

KonferenceInternational Conference on Information Systems 2018
LandUSA
BySan Francisco
Periode13/12/201816/12/2018

Fingeraftryk

Evaluation
Homophily
Prediction
Evaluator
Novelty
Selection process
An enterprise
Employees
Dyads
Social evaluation
Uncertainty
Propensity

Citer dette

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Hierarchical Distance and Idea Evaluation in Enterprise Crowdfunding. / Zaggl, Michael ; Schweisfurth, Tim ; Schoettl, Claus; Raasch, Christina.

I: Proceedings of the International Conference on Information Systems, 2018.

Publikation: Bidrag til tidsskriftKonferenceartikelForskningpeer review

TY - GEN

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AU - Schoettl, Claus

AU - Raasch, Christina

PY - 2018

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N2 - In order to innovate, organizations need to select the best ideas for implementation. Research shows that idea selection suffers from biases, but fails to consider hierarchy as a potential source of bias. We examine how the hierarchical distance between an idea's creator and its evaluator affects the evaluation outcomes and advance three competing theoretical predictions based on homophily, competition, and status. These predictions are tested in a unique dataset an enterprise crowdfunding initiative where 265 employees evaluated 77 ideas by allocating corporate funds, resulting in 20,405 evaluation dyads. We find that idea evaluations are more favorable if the idea creator is hierarchically close to the evaluator, supporting the homophily perspective. Idea novelty amplifies this relationship, suggesting that greater uncertainty increases the propensity for social evaluations. Our findings are robust to various specifications. We contribute to the literature on idea evaluation and inform the design of idea selection processes in organizations.

AB - In order to innovate, organizations need to select the best ideas for implementation. Research shows that idea selection suffers from biases, but fails to consider hierarchy as a potential source of bias. We examine how the hierarchical distance between an idea's creator and its evaluator affects the evaluation outcomes and advance three competing theoretical predictions based on homophily, competition, and status. These predictions are tested in a unique dataset an enterprise crowdfunding initiative where 265 employees evaluated 77 ideas by allocating corporate funds, resulting in 20,405 evaluation dyads. We find that idea evaluations are more favorable if the idea creator is hierarchically close to the evaluator, supporting the homophily perspective. Idea novelty amplifies this relationship, suggesting that greater uncertainty increases the propensity for social evaluations. Our findings are robust to various specifications. We contribute to the literature on idea evaluation and inform the design of idea selection processes in organizations.

KW - Competition

KW - Crowdfunding

KW - Hierarchy

KW - Homophily

KW - Idea evaluation

KW - Idea selection

KW - Status

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