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Where is the power in numbers? Understanding firm and consumer power when crowdsourcing

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  • Wilson, Matthew

Abstract

This work utilizes the theory of social power as a lens through which to analyze the power structure of firms and consumers involved in crowdsourcing and discusses the managerial implications of this power balance. The results of this analysis reveal how power is structured differently in each form of crowdsourcing, with consumer power being strongest in the case of idea crowdsourcing and weakest in the case of microtask crowdsourcing. These differences in power have implications for managers who initiate and maintain crowdsourcing endeavors. Understanding the structure of consumer power in different types of crowdsourcing allows firms to better prepare for the wide range of possible outcomes as consumers inevitably push their own agendas regardless of whether or not these agendas are aligned with those of the firm.

Suggested Citation

  • Wilson, Matthew, 2018. "Where is the power in numbers? Understanding firm and consumer power when crowdsourcing," Business Horizons, Elsevier, vol. 61(4), pages 545-554.
    • Handle: RePEc:eee:bushor:v:61:y:2018:i:4:p:545-554
    DOI: 10.1016/j.bushor.2018.03.004
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    1. Prpić, John & Shukla, Prashant P. & Kietzmann, Jan H. & McCarthy, Ian P., 2015. "How to work a crowd: Developing crowd capital through crowdsourcing," Business Horizons, Elsevier, vol. 58(1), pages 77-85.
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    4. Wilson, Matthew & Robson, Karen & Botha, Elsamari, 2017. "Crowdsourcing in a time of empowered stakeholders: Lessons from crowdsourcing campaigns," Business Horizons, Elsevier, vol. 60(2), pages 247-253.
    5. Berthon, Pierre R. & Pitt, Leyland F. & McCarthy, Ian & Kates, Steven M., 2007. "When customers get clever: Managerial approaches to dealing with creative consumers," Business Horizons, Elsevier, vol. 50(1), pages 39-47.
    6. Labrecque, Lauren I. & vor dem Esche, Jonas & Mathwick, Charla & Novak, Thomas P. & Hofacker, Charles F., 2013. "Consumer Power: Evolution in the Digital Age," Journal of Interactive Marketing, Elsevier, vol. 27(4), pages 257-269.
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    1. Park, Andrew & Wilson, Matthew & Robson, Karen & Demetis, Dionysios & Kietzmann, Jan, 2023. "Interoperability: Our exciting and terrifying Web3 future," Business Horizons, Elsevier, vol. 66(4), pages 529-541.

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