Minimizing Complementors’ Risk in Third-Party Innovation: A Qualitative Comparative Analysis (QCA) of Digital Platform Configurations

The emergence of platforms is shifting the locus of digital innovation to ecosystems on which numerous developers create extensions with additional functionalities. Despite all the potential benefits for complementors, however, this new organizing logic of digital innovation also introduced essential new risks. Recent studies in IS focused on risk of IT projects from a contingency perspective neglecting the complexity of ecosystems. In order to shed light on this, our work examines how app architecture as a complementor´s control mechanism and four types of ecosystem hazards shape the likelihood and impact of the risk of failure in third-party innovation. By using a configurational approach based on fuzzy-set qualitative comparative analysis (FsQCA), we display complex interactional effects of the causal conditions on complementors’ perception of hazardous environments and thus provide valuable insights for both practice and theory on platform ecosystems

Using Crowdfunding For Start-Up Evaluation: How Task Representation Influences Predition Accuracy of The Crowd

The paper at hand examines if the crowd can offer valuable support in evaluating start-ups. In doing so, we plan to conduct an experiment 1.) to test if the crowd is capable to support experts in evaluating start-ups 2.) to examine how differences in task-representation (i.e. rating scales vs. a crowdfunding mechanism) influences cognitive processing of the crowd and 3.) to examine how types of cognitive processing (i.e. system 1 thinking vs. system 2 thinking) relate to prediction accuracy of the crowd. To this end, we plan to introduce crowdfunding as a new evaluation mechanism to support the crowd in coming up with more accurate predictions of start-up value. Our theoretical contribution is twofold. First, we aim to show if the crowd can be used to support Venture capitalists in evaluating start-ups, in the sense that their evaluations agree with expert evaluations. Second, we plan to con-tribute to a better understanding about how the design of evaluation mechanisms influences peoples cognitive processing and the crowds ability to predict start-up value

Managing Initial Coin Offerings: Towards a Taxonomy of ICO Processes

Initial Coin Offerings are a new type of crowd-based fundraising mechanism that uses the blockchain to issue tokens to a crowd of people in exchange for funds that blockchain start-ups use to develop their business. Unfortunately, due to the recency of this new phenomenon, there is no systematic understanding of the ICO process and its underlying process characteristics. However, companies engaging in ICOs should be able to evaluate and choose the right process steps to best achieve their goal. Against this background, we develop a taxonomy for ICO processes. In contrast to previous work, this classification scheme focuses exclusively on the processual nature of ICOs and its underlying mechanisms

Heading for new Shores: Crowdsourcing for Entrepreneurial Opportunity Creation

In this conceptual paper, we propose crowdsourcing for opportunity creation as a new field of further research in both in the information systems and entrepreneurship domain. Building on previous research on entrepreneurial opportunity creation, we elaborate on the benefits of em-ploying a crowdsourcing approach in order to reduce uncertainty and iteratively develop an op-portunity into a new venture. Based on this assessment we develop a research agenda that high-lights the need to adapt previous crowdsourcing mechanisms for the special context of entrepre-neurial opportunity creation. In doings so, we expand research of crowdsourcing to the field of entrepreneurship by extending the principles of crowdsourcing for innovation for entrepreneuri-al opportunity creation. Further, by highlighting the requirements of crowdsourcing for oppor-tunity creation, we point towards potential future research issues. Such research should examine novel participation architectures that enable the iterative co-creation of an opportunity through different maturity stages, thereby overcoming the limitations of previous crowdsourcing efforts that rather focus on the generation of novel ideas than its evolution. Finally, we propose crowdsourcing as a practical way for entrepreneurs to validate their assumptions about their op-portunity, thereby achieving fast and early product-market fit

Understanding Platform Loyalty in the Cloud: A Configurational View on ISV´s Costs and Benefits

Platform-as-a-service (PaaS) providers are increasingly engaged in nurturing vibrant ecosystems of independent software vendors (ISVs) by offering standardized services. However, cloud ecosystems have also been known for its fluctuation and high rates of desertion. A currently under-researched explanation for this low traction and high rates of fluctuation may lie in the fact that ISVs face considerable costs when joining and acting on a specific platform. If these costs are too high, they can rapidly outweigh the additional value generated by the ecosystem. This study therefore explains the role of different configurations of cost-inducing factors and resource benefits in influencing an ISV´s platform loyalty. By using a configurational approach based on fuzzy-set qualitative comparative analysis (FsQCA), we display complex interactional effects of cost and benefits as causal conditions on ISVs’ intention to stay in the ecosystem and thus provide valuable insights for both practice as well as theory on platform ecosystems

Innovating Beyond the Fuzzy Front End: How to Use Reward-Based Crowdfunding to Co-create with Customers

Current research suggests that crowdfunding not only serves as an alternative source of capital but also as a flexible tool allowing start-ups to systematically integrate a crowd into their innovation processes. However, an adequate understanding of how start-ups can systematically leverage the co-creation potential of their early customers during crowdfunding is still nascent. Against this background, the aim of this research is to conceptualize and examine the concept of co-creation in the context of reward-based crowdfunding. In doing so, we distinguish it from other methods of user integration in the realm of open innovation and discuss how entrepreneurs can leverage reward-based crowdfunding to engage their customers in the development and deployment of their product and service offerings

Designing for Crowdfunding Co-creation – How to Leverage the Potential of Backers for Product Development

Crowdfunding is now established as a valid alternative to conventional methods of financing for star- tups. Unfortunately, to date, research has not investigated how backers can be encouraged to support entrepreneurs beyond funding. The aim of this study is to design and evaluate certain design elements for reward-based crowd- funding platforms that can engage backers in co-creational activities for product development. The study uses a design science research (DSR) approach and the theoretical con- cept of psychological ownership to inform a new design and then experimentally test that design. The results sug- gest that the derived artifacts positively influence co-cre- ational activities in crowdfunding and that feelings of psychological ownership play an important mediating role. The contribution of this research is threefold. First, this paper extends crowdfunding’s application potential from merely a method of financing to a method of value creation with customers for product development. Second, the study advances DSR by applying a new DSR approach that shows whether a design performs as hypothesized by theory. Third, this research allows the exploration of backers’ individual behavior as opposed to their collective behavior

The Future of Human-AI Collaboration: A Taxonomy of Design Knowledge for Hybrid Intelligence Systems

Recent technological advances, especially in the field of machine learning, provide astonishing progress on the road towards artificial general intelligence. However, tasks in current real-world business applications cannot yet be solved by machines alone. We, therefore, identify the need for developing socio-technological ensembles of humans and machines. Such systems possess the ability to accomplish complex goals by combining human and artificial intelligence to collectively achieve superior results and continuously improve by learning from each other. Thus, the need for structured design knowledge for those systems arises. Following a taxonomy development method, this article provides three main contributions: First, we present a structured overview of interdisciplinary research on the role of humans in the machine learning pipeline. Second, we envision hybrid intelligence systems and conceptualize the relevant dimensions for system design for the first time. Finally, we offer useful guidance for system developers during the implementation of such applications

Misplaced Trust: Measuring the Interference of Machine Learning in Human Decision-Making

ML decision-aid systems are increasingly common on the web, but their successful integration relies on people trusting them appropriately: they should use the system to fill in gaps in their ability, but recognize signals that the system might be incorrect. We measured how people's trust in ML recommendations differs by expertise and with more system information through a task-based study of 175 adults. We used two tasks that are difficult for humans: comparing large crowd sizes and identifying similar-looking animals. Our results provide three key insights: (1) People trust incorrect ML recommendations for tasks that they perform correctly the majority of the time, even if they have high prior knowledge about ML or are given information indicating the system is not confident in its prediction; (2) Four different types of system information all increased people's trust in recommendations; and (3) Math and logic skills may be as important as ML for decision-makers working with ML recommendations.Comment: 10 page