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Cognitive sources of liability of foreignness in crowdsourcing creative work

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A Correction to this article was published on 13 January 2023

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Abstract

Is there a liability of foreignness in online crowdsourcing contests for creative work? Digitalization mitigates physical orthodox transaction-based frictions and is therefore expected to reduce the liability of foreignness. However, for creative work sourced digitally across borders, due to the decoupling of the locus of creation from the locus of selection and due to the cognitive nature of creative tasks, we suggest that frictions continue to arise from foreign solvers’ cognitive home biases in creative task generation and from solution-seeker firm managers’ cognitive home biases in creative task selection. These biases manifest as LOF, reducing the likelihood of foreign solvers’ work being selected as winners in online crowdsourcing contests. Furthermore, we argue that as foreign solvers gain both breadth and depth of international experience in prior online contests, and observe host peers in a live contest, the effect of the liability of foreignness is reduced due to the conceptual expansion of solvers’ creative consideration sets. Similarly, the seeker firm’s cognitive openness in selection arising from its being in a technology industry or being a physically international firm reduces the liability’s negative effect on solvers’ success. Our conditional logit estimation with multiway fixed-effects using 558,504 contest-solver observations from 13,993 solution-seeker firms in 102 countries and 11,497 solvers in 124 countries on an online platform broadly supports our hypotheses, suggesting that there are both demand-side and supply-side cognitive sources of LOF even in unblind online crowdsourcing contests.

Résumé

Existe-t-il les handicaps liés à la nationalité étrangère de l’entreprise (Liability of foreignness - LOF) dans les concours de crowdsourcing en ligne pour le travail créatif ? La numérisation atténue les frictions physiques orthodoxes liées aux transactions et devrait en conséquence réduire le LOF. Néanmoins, pour les travaux créatifs numériquement approvisionnés à l’international, en raison de la nature cognitive des tâches créatives et du découplage entre le locus de création et le locus de sélection, nous suggérons que les frictions continuent de provenir des biais domestiques cognitifs des solutionneurs étrangers dans la génération des tâches créatives et de ceux des managers des entreprises demandeurs de solution dans la sélection des tâches créatives. Ces biais se manifestent sous forme de LOF, réduisant la probabilité que les travaux des solutionneurs étrangers soient sélectionnés comme gagnants dans les concours de crowdsourcing en ligne. De plus, nous argumentons que lorsque les solutionneurs étrangers acquièrent une expérience internationale à la fois profonde et large lors de concours en ligne antérieurs, et qu'ils observent leurs pairs hôtes lors d'un concours en direct, l'effet du LOF est réduit en raison de l'expansion conceptuelle des ensembles de considérations créatives des solutionneurs. De même, l'ouverture cognitive de l'entreprise demandeur dans la sélection, résultant du fait qu'elle appartient à un secteur technologique ou qu'elle est une entreprise physiquement internationale, réduit l'effet négatif du LOF sur la réussite des solutionneurs. Nos hypothèses sont largement confirmées par notre estimation logit conditionnelle avec effets fixes multidirectionnels qui utilise 558504 observations solutionneur-concours provenant de 13993 entreprises demandeurs dans 102 pays et de 11497 solutionneurs dans 124 pays sur une plateforme en ligne ; Ce qui suggère qu'il existe des sources cognitives du LOF à la fois du côté de la demande et de l'offre même dans les concours de crowdsourcing en ligne non aveugles

Resumen

¿Existe una desventaja de extranjería (LOF por sus iniciales en inglés) en con concursos en línea de crowdsourcing para trabajo creativo? La digitalización mitiga las fricciones físicas ortodoxas basadas en las transacciones y, por tanto, se espera que reduzca las desventajas de extranjería. Sin embargo, en el caso del trabajo creativo de origen digital transfronterizo, debido a que se desvincula el locus de creación del locus de selección y a la naturaleza cognitiva de las tareas creativas, proponemos que las fricciones siguen surgiendo de los sesgos cognitivos asociados a los sesgos de país de origen que tienen los solucionadores extranjeros en la generación de tareas creativas y de los sesgos cognitivos sobre el país de origen de los gerentes de las empresas que buscan soluciones en la selección de tareas creativas. Estos sesgos se manifiestan como desventaja de extranjería, reduciendo la probabilidad de que el trabajo de los solucionadores extranjeros sea seleccionado como ganador en los certamenes de crowdsourcing en línea. Además, argumentamos que a medida que los solucionadores extranjeros adquieren experiencia internacional en concursos en línea anteriores y observan a los compañeros del anfitrión en un concurso en vivo, el efecto de la desventaja la extranjería se reduce debido a la expansión conceptual de los conjuntos de consideraciones creativas de los solucionadores. De manera similar, la apertura cognitiva de la empresa solicitante en la selección, derivada de su pertenencia a una industria tecnológica o de ser una empresa físicamente internacional, reduce el efecto negativo de la desventaja sobre el éxito de los solucionadores. Nuestra estimación logit condicional con efectos fijos multidireccionales utilizando 558.504 observaciones de concursos de 13.993 empresas buscadoras de soluciones en 102 países y 11.497 solucionadores en 124 países en una plataforma en línea apoya ampliamente nuestras hipótesis, sugiriendo que hay fuentes cognitivas de desventajas de extranjería tanto del lado de la demanda como del lado de la oferta incluso en concursos de crowdsourcing en línea no ciegos.

Resumo

Existe uma desvantagem de ser estrangeiro (LOF) em concursos online de crowdsourcing para trabalhos criativos? A digitalização mitiga atritos físicos ortodoxos baseados em transações e, portanto, espera-se que reduza a desvantagem de ser estrangeiro. No entanto, para trabalho criativo de origem digital além-fronteiras, devido à dissociação do local de criação do local de seleção e devido à natureza cognitiva das tarefas criativas, sugerimos que atritos continuem a surgir de vieses cognitivos domésticos de solucionadores estrangeiros na geração de tarefas criativas e de vieses cognitivos domésticos de gerentes de empresas que buscam soluções na escolha de tarefas criativas. Esses vieses se manifestam como LOF, reduzindo a probabilidade de que o trabalho de solucionadores estrangeiros seja selecionado como vencedor em concursos online de crowdsourcing. Além disso, argumentamos que, à medida que solucionadores estrangeiros ganham amplitude e profundidade de experiência internacional em concursos on-line anteriores, e observam colegas anfitriões em um concurso ao vivo, o efeito da desvantagem de ser estrango é reduzido devido à expansão conceitual dos conjuntos de considerações criativas de solucionadores. Semelhantemente, a abertura cognitiva da empresa buscadora na seleção decorrente de estar em uma indústria de tecnologia ou ser uma empresa fisicamente internacional reduz o efeito negativo da desvantagem no sucesso de solucionadores. Nossa estimativa logit condicional com efeitos fixos multisentido usando 558.504 observações de solucionadores de concursos de 13.993 empresas que buscam soluções em 102 países e 11.497 solucionadores em 124 países em uma plataforma on-line suporta amplamente nossas hipóteses, sugerindo que existam tanto do lado da demanda quanto do lado da oferta fontes cognitivas de LOF, mesmo em concursos de crowdsourcing online não cegos.

摘要

创造性工作在线上众包竞赛中是否存在外来者劣势 (LOF)? 数字化减轻了基于物理的正统交易的摩擦, 因此有望减少外来者劣势。然而, 对于跨境数字外包的创造性工作, 由于创造点与选择点的脱钩以及创造性任务的认知性质, 我们认为, 摩擦继续产生于外国解决者的创造性任务生成中的认知国内偏好和寻求解决方案的公司经理在创造性任务选择中的认知国内偏好。这些偏好表现为LOF, 降低了外国解决者的工作被选为线上众包竞赛获胜者的可能性。此外, 我们认为, 随着外国解决者在先前的线上竞赛中所获国际经验的广度和深度的增加, 并在现场竞赛中观察东道国同行, 外来者劣势效应由于解决者创造性思考集的概念扩展而降低。同样, 寻求解决方案的公司在选择方面的认知开放度源于其身处于技术行业或为国际公司, 从而减少了劣势对解决者成功的消极效应。我们使用来自 102 个国家的 13,993 个寻求解决方案的公司和 124 个国家/地区的 11,497 个解决者在线上平台 558,504 个竞赛解决者观察得到多路固定效应的有条件的逻辑回归估计广泛支持了我们的假设, 这表明需求方和供应方LOF 的认知来源的存在, 即使是在非盲线上众包竞赛中也是如此。

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ACKNOWLEDGEMENTS

We thank the seminar participants at Aalborg University for critical comments on an earlier version of this work. We are most grateful to the Editor Klaus Meyer for his excellent guidance and the three anonymous reviewers whose insightful feedback helped further improve the paper. All errors remain ours.

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  1. Pamplin College of Business, Virginia Polytechnic Institute and State University, 880 West Campus Drive, Blacksburg, VA, 24061, USA

    Pankaj Kumar

  2. Indian Institute of Management, Vastrapur, Ahmedabad, Gujarat, 380015, India

    Swanand J. Deodhar

  3. Carlson School of Management, University of Minnesota, 321 19th Avenue South, Minneapolis, MN, 55455, USA

    Srilata Zaheer

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The original online version of this article was revised: In this article the author name Srilata Zaheer was incorrectly written as Sri Zaheer.

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Kumar, P., Deodhar, S.J. & Zaheer, S. Cognitive sources of liability of foreignness in crowdsourcing creative work. J Int Bus Stud 54, 686–716 (2023). https://doi.org/10.1057/s41267-022-00538-2

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