Peer produced innovation: An exploration of 'the wisdom of crowds' in virtual worlds

While researchers have examined the role of individuals in crowdsourcing for open innovation purposes (wisdom in crowds) there is a gap in our understanding of the collective intelligence of communities for such purposes (wisdom of crowds). The objective of this exploratory study is therefore to explore the peer production of innovation; specifically the challenges in leveraging the collective intelligence of online communities. Through an analysis of the crowdsourced innovation activities of Studio Wikitecture, a virtual community operating within and beyond an immersive social virtual world, we reveal six challenges associated with leveraging a peer production innovation model. These include the challenges of (1) the participatory unit; (2) orchestration; (3) granularity; (4) filtration; (5) attribution; and (6) reward. In our analysis and discussion we briefly propose three types of underlying mechanisms (informating, adhesion, and cohesion mechanisms) that may mitigate these challenges. This exploratory study reveals various insights into the intricate successes and tensions within the community studied, presenting practical implications in further studying the viability and sustainability of crowdsourced open innovation initiatives.