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  • Strategic Organization

Firms, Crowds, and Innovation

By: Teppo Felin, Karim R. Lakhani and Michael L. Tushman
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Abstract

The purpose of this article is to suggest a (preliminary) taxonomy and research agenda for the topic of “firms, crowds, and innovation” and to provide an introduction to the associated special issue. We specifically discuss how various crowd-related phenomena and practices—for example, crowdsourcing, crowdfunding, user innovation, and peer production—relate to theories of the firm, with particular attention on “sociality” in firms and markets. We first briefly review extant theories of the firm and then discuss three theoretical aspects of sociality related to crowds in the context of strategy, organizations, and innovation: (1) the functions of sociality (sociality as extension of rationality, sociality as sensing and signaling, sociality as matching and identity); (2) the forms of sociality (independent/aggregate and interacting/emergent forms of sociality); and (3) the failures of sociality (misattribution and misapplication). We conclude with an outline of future research directions and introduce the special issue papers and essays.

Keywords

Crowdsourcing; Innovation; Open Innovation; Organization Theory; Collaborative Innovation and Invention; Organizations; Theory; Strategy

Citation

Felin, Teppo, Karim R. Lakhani, and Michael L. Tushman. "Firms, Crowds, and Innovation." Special Issue on Organizing Crowds and Innovation. Strategic Organization 15, no. 2 (May 2017): 119–140.
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About The Authors

Karim R. Lakhani

Technology and Operations Management
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Michael L. Tushman

Organizational Behavior
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More from the Authors
  • Sustainable Business Practices Sustainability as a Business-Model Transformation By: Ivanka Visnjic, Felipe Monteiro and Michael Tushman
  • JPMorganChase: Leadership in the Age of GenAI By: Iavor I. Bojinov, Karim R. Lakhani and David Lane
  • The Cybernetic Teammate: A Field Experiment on Generative AI Reshaping Teamwork and Expertise By: Fabrizio Dell'Acqua, Charles Ayoubi, Hila Lifshitz, Raffaella Sadun, Ethan Mollick, Lilach Mollick, Yi Han, Jeff Goldman, Hari Nair, Stew Taub and Karim R. Lakhani
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