nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2017‒12‒11
two papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Can Community Driven Care be integrated in the European Welfare System? Institutional Challenges and Historical Lessons. By Lakomaa, Erik; Sanandaji, Tino
  2. Hierarchical similarity biases in idea evaluation: A study in enterprise crowdfunding By Schweisfurth, Tim; Zaggl, Michael A.; Schöttl, Claus P.; Raasch, Christina

  1. By: Lakomaa, Erik (Institute for Economic and Business History Resarch); Sanandaji, Tino (Institute for Economic and Business History Resarch)
    Abstract: Parallel to the formal (health) care organizations in Europe, private or public, a number of community driven care projects have emerged. They may supplement the formal organizations by reducing costs or provide care to groups that for some reason do not have access to the formal sector. Drawing on Ostromian theory of commons, and on the previous theory and research on open software development (which share some of the characteristics of “open care”) we use cases of historical cases of community driven care to examine the prospects for such project to help remedy the cost crisis in the care sector. We explore under which institutional settings “open care” is likely to emerge and when open care projects have potential to scale. It is found that open care is more likely to emerge and prosper when they build on existing organizational structures; where the participants do not need to create new hierarchies or governance structures and where they share common values. The paper may serve policy makers aiming to design institutions or regulation, that facilitate, or at least not impede, the emergence of community based care.
    Keywords: Commons; health care; Europe; Institutions; social entreprenurship
    JEL: D02 D71 L11 L19 L31 L38
    Date: 2017–09–29
  2. By: Schweisfurth, Tim; Zaggl, Michael A.; Schöttl, Claus P.; Raasch, Christina
    Abstract: To be successful innovators, organizations must select the best ideas for implementation. Extant research shows that idea selection is distorted by a number of biases, but has failed to consider hierarchy, a key element of organizations. We examine how hierarchical distance between an idea's creator and its evaluator affects evaluation outcomes and thus advance three competing theoretical predictions based on homophily, competition, and status. To test our predictions, we use a unique dataset from an enterprise crowdfunding initiative at Siemens where 265 employees evaluated 77 ideas by allocating corporate funds, resulting in 20,405 evaluation dyads. We find that idea evaluations are more favorable if the idea creator is hierarchically similar to the evaluator, thus supporting the homophily perspective. Idea novelty amplifies this bias, inducing more social evaluations. Our findings are robust to various specifications and tests, and are absent in a subsample where idea creators remained anonymous. We contribute to the idea evaluation research and inform organizational idea selection process designs.
    Keywords: idea evaluation,idea selection,crowdfunding,hierarchy,homophily,status,competition
    JEL: D91 M19 O31
    Date: 2017

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