Difference Between Internal And External Crowdsourcing

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According to several scholars (including Villarroel and Reis, 2010; Boudreau and Lakhani, 2013; Carlson and Wilmot, 2006; Chesbrough, 2006a, 2006b; Byren, 2013; Yap, 2012; Howe, 2006, 2009; Brabham, 2008b, 2009, 2013), the main difference between internal and external crowdsourcing can be summarized as follows: i) the internal crowd (employees) is known to the firm; ii) the crowd can be all employees of the firm, a subsidiary of the firm, or may also include partners and suppliers; iii) the crowd is specifically used for problem solving or aggregating ideas for innovation purposes; and iv) the crowd may also be anyone with internet or mobile remote access capable of participating in a crowdsourcing contest and vote on the ideas of others. Internal crowdsourcing is easier to implement in companies where social media acceptance is high (Yap, 2012); crowdsourcing attempts within companies don’t measure up to the external crowd (Boudreau and Lakhani, 2013). Crowdsourcing forms such as idea marketplaces and idea jams lack the capabilities and fall short to the external crowd 's full capacity. Boudreau and Lakhani (2013) believes employees are discouraged from seeking challenges; Yap (2012) says that internal crowdsourcing unveil innovations from employees which otherwise would not be captured. Carlson and Wilmot (2006) emphasizes that every employee does in fact has the ability to innovate, and must do so for their company to stay competitive. The desire for deeper exploration of
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