Open collective innovation oui 2010 simplified hypo (slide 18)
Transcript of Open collective innovation oui 2010 simplified hypo (slide 18)
Where & When Can Open Collaborative Innovation
Thrive? A Theory of Performance
Sheen S. Levine Michael J. Prietula
Eighth Annual International Open and User Innovation Workshop
Characteristics of Phenomenon
1 von Krogh & von Hippel 2003 3 Shah 2005 5 von Krogh, Spaeth & Lakhani 20032 Lee & Cole 2003 4 Mockus, Fielding & Herbsleb 2005 6 Lakhani & von Hippel 2003
Open source software
Wikipedia
File sharing
User forums
Creates products of economic value, has measureable performance 1,3
Interaction and exchange activities are central 5
yet Work
purposefulloosely coordinated
2,4
Open access to contribute and consume
1,2,3
Questions about PerformanceOpen collaborative innovation differs
from firm-based innovation(Lee & Cole 2003; von Hippel & von Krogh 2003)
How it survives despite massive free-riding/non-contributing users?
When expands beyond software? In which environments can it thrive?
How to design open innovation systems?
What affects performance?
THE MODELGOODS, BEHAVIOR, NEEDS
GoodsHow rival?
BehaviorHow cooperative are
participants?
NeedsHow similar or
dissimilar?
How Rival are the Goods?To what extent does one’s consumption of the good interfere with another’s consumption of the same good
More rival Less rival
FoodClothesHousingHardware
TV broadcast
RoadPublic safety
Software
How Cooperative are Participants?Empirically, human population composed of individuals with different inclinations (or strategies) for cooperation
(Kurzban & Hauser, 2005)
CooperatorsReciprocators Free ridersContribute to others unconditionally
Contribute if others
contribute too
Do not contribute
13% 53% 20%Remaining 14% are inconsistent
How Similar are the Needs?Participants may have a variety of needs or very similar needs. Their needs can differ or resemble each other.
Similar Needs
Dissimilar Needs
Everybody is looking for the same thing
Each is looking for
different things
THE METHODAGENTS INTERACT & EXCHANGE
Agent-based Model Each agent has skills and needs, which
rarely overlap Searches the network to fulfill needs,
subject to cooperation and rivalry characteristics
If search fails, develops or finds outside network
PerformanceTo what extent goals are accomplished through
collaboration?
Network of Exchange Interactions
WHAT AFFECTS PERFORMANCE?THE IMPACT OF COOPERATION
Cooperators Matters
1% 5% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mean
Cooperators in Population
Perf
orm
an
ce
(G
oals
Ach
ieved
via
Exch
an
ge)
Kurzban-Hauser Ratio
How Cooperation Matters?Cooperators improve performance
Decreasing marginal returns from cooperators
Reciprocators Matter Greatly
Max
MinWhat
causes the variance?
Performance Robust with Few Cooperators, Many Reciprocators
Max
MinMany Reciprocators
Few Free-Riders
Many Free-RidersFew Reciprocators
Many ReciprocatorsFew Free-Riders
Many Free-RidersFew Reciprocators
Kurzban-Hauser Ratio
How Cooperation Matters?Cooperators improve performance
Decreasing marginal returns from cooperators
Reciprocators substitute cooperators
Free riders matter little
WHAT AFFECTS PERFORMANCE?THE IMPACT OF RIVALRY AND NEEDS
Non-Rival 100% Rival0%
10%
20%
30%
40%
50%
60%
70%
80%
Similar Needs
Dissimilar Needs
Rivalry
Perf
orm
ance
Need Similarity Matters
Kurzban-
Houser
How Rivalry & Needs Matter?Rivalry decreases performance
Rivalry interacts with need similarity
WHAT DOES IT MEAN?IMPLICATIONS
Rivalry & Needs Interact to Affect Performance
Rivalr
ySim
ilarity
in Needs
Perfo
rma
nce
Rivalry has non-linear effect on performance
Rivalry–Needs compensatory effect
28
Implications to PracticeGoods
Low rivalry produces higher performance, but...
When needs are dissimilar, high performance possible even with high rivalry
Cooperation Cooperators are important, not very
important; Good performance even with tiny core
Reciprocators are underappreciated majority Free-riders matter little in realistic settings
ImplicationsNeeds
Dissimilar needs are an advantage; diversity is valuable
Yet, even similar needs can be satisfied in most cases
Propositions about Performance How it survives despite massive free-
riding/non-contributing users?Free riders matter only in the extreme
In which environments can it succeed? How to design open innovation systems? Near non-rival goods, diversity of participant needs, many cooperators or reciprocators
If conditions are less than ideal... Some elements can compensate for others!
TakTack
Cooperation & Needs Interact
Non-Rival 100% Rival0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%P
erf
orm
ance
98% Recipro-cators
Similar NeedsDissimilar Needs
98% Coop-erators
Kurzban-Houser