An Examination of the Dynamics of Crowdsourcing Contests: Role of Feedback Type

Abstract

As more businesses are turning to crowdsourcing platforms for solutions to business problems, determining how to manage the sourcing contests based on their objectives has become critically important. Aside from static design parameters, such as the reward, a lever organizations can use to dynamically steer contests toward desirable goals is the feedback offered to contestants during the contest. In this study, first, using the psychology literature on the theory of feedback intervention, we classify feedback into two types: outcome and process. Second, using data from almost 12,000 design contests, we empirically examine the effects of the two types of feedback on the convergence and diversity of submissions following feedback interventions. We find that process feedback, providing goal-oriented information to contestants, fosters convergent thinking, leading to submissions that are similar. Outcome feedback, on the other hand, encourages divergent thinking, producing a greater variety of solutions to a problem. Furthermore, the effects are strengthened when the feedback is provided earlier in the contest rather than later. Based on our findings, we offer insights on how practitioners can strategically use an appropriate form of feedback to either generate greater diversity of solutions or efficient convergence to an acceptable solution.

Do Dynamic Signals Affect High-Quality Solvers’ Participation Behavior? Evidence from the Crowdsourcing Platform

“…Previous research has paid more attention to the results of crowdsourcing, but the process of crowdsourcing contests can more accurately reflect the change trajectory of the project [30]. Scholars believe that static stock data cannot effectively reflect the changes in project design parameters over time.…”

“…Therefore, Jiang et al [31] simulate multiple stages of the crowdsourcing competition by building a dynamic structural model, and explore the impact of feedback on the solver's entry into the competition, exploration and development of new solutions. Similarly, Sanyal and Ye [30] also posit that feedback is a tool to dynamically improve the efficiency of public competitions. They explore the evolution of submissions based on feedback and dynamically guide participants to reach the final ideal state, rather than just focusing on the results.…”

“…Adopting a complementary perspective, Piazza and Perrone [42] posit that the solver's personal profile and blog can indicate their abilities and skills, and both serve as important skill signals to attract the attention of the seeker. In addition, examples [43] and feedback [30] reduce the information asymmetry between the project parties by providing more intuitive reference materials and raising further requirements for the current problem, which can reduce the solver's cognitive cost and effort.…”

“…However, previous studies are based on static signals, without considering the variation in the signal over time and the difference in its impact. Scholars have considered the dynamic development process of crowdsourcing and explored the impact of feedback on dynamic performance from the perspective of the seeker [30,31]. However, what is revealed about the changes over time in the project itself is also worthy of attention.…”

“…Most previous studies have analyzed only the completed project, ignoring the impact of changes in the project process. Although the latest research has paid attention to the dynamics of crowdsourcing contests, their studies are limited to the role of feedback signals in the crowdsourcing process [30,31]. For small and medium-sized projects, short-term factor changes have an important impact on the behavior of participants.…”