Hierarchical Distance and Idea Evaluation in Enterprise Crowdfunding

Michael Zaggl, Tim Schweisfurth, Claus Schoettl, Christina Raasch

Research output: Chapter in Book/Report/Conference proceedingConference contributionAcademicpeer-review

3 Citations (Scopus)

Abstract

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.
Original languageEnglish
Title of host publicationICIS 2018 proceedings
Publication statusPublished - 2018
Externally publishedYes
Event39th International Conference on Information Systems, ICIS 2018: Bridging the Internet of People, Data, and Things - San Francisco Marriott Marquis, San Francisco, United States
Duration: 13 Dec 201816 Dec 2018
Conference number: 39
https://icis2018.aisconferences.org/

Conference

Conference39th International Conference on Information Systems, ICIS 2018
Abbreviated titleICIS 2018
CountryUnited States
CitySan Francisco
Period13/12/1816/12/18
Internet address

Keywords

  • Competition
  • Crowdfunding
  • Hierarchy
  • Homophily
  • Idea evaluation
  • Idea selection
  • Status

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