The Theory of Crowd Capital

TL;DR

This paper develops a theoretical framework explaining how organizations generate valuable knowledge resources, called Crowd Capital, by engaging dispersed individuals through specific structures and processes, impacting organizational boundaries and information systems research.

Contribution

It introduces a novel theory of Crowd Capital, detailing how organizations leverage Crowd Capability to harness dispersed knowledge, supported by diverse literature and practical examples.

Findings

Proposes a model of Crowd Capital generation

Highlights implications for organizational boundaries

Connects Crowd Capital to IS research

Abstract

We are seeing more and more organizations undertaking activities to engage dispersed populations through IS. Using the knowledge-based view of the organization, this work conceptualizes a theory of Crowd Capital to explain this phenomenon. Crowd Capital is a heterogeneous knowledge resource generated by an organization, through its use of Crowd Capability, which is defined by the structure, content, and process by which an organization engages with the dispersed knowledge of individuals (the Crowd). Our work draws upon a diverse literature and builds upon numerous examples of practitioner implementations to support our theorizing. We present a model of Crowd Capital generation in organizations and discuss the implications of Crowd Capital on organizational boundary and on IS research.