Oscar Curse in the Open Innovation Community? The Effect of Awards on User-innovators’ Performance

Abstract

This study investigates the effect of awards on user-innovators’ subsequent innovation performance within an open innovation community of 3D-printable design context. Drawing on self-efficacy theory, we argue that user-innovators gain higher self-efficacy after their work is recognized with an award, which increases the subsequent innovation performance of experienced user-innovators. However, such an award-induced increase in self-efficacy will undermine the subsequent innovation performance of inexperienced user-innovators. We find support for our predictions using a two-way fixed effects difference-in-differences analyses within a matched sample. Our study identifies an individual-level contingency that determines the nature of the awards–performance relationship, and identifies an unintended negative consequence of awards' on inexperienced user-innovators’ performance.