Barriers to Adoption with an example of social search media

Barriers to Adoptionwith an example of social search media April 2011 Wayne Baker Robert P. Thome Professor of Business Administration Professor of Sociology University of Michigan www.waynebaker.org www.OurValues.org (c) 2011 Wayne Baker

Marriage of technology + social interaction to co-create valuable content and community Users generate and share content Users consume and benefit from content Users repay content-providers (pay it back and/or pay it forward) Example: OurValues.org and Facebook (c) 2011 Wayne Baker

1. Obligation to generate and share content • Costs such as time, effort, or economic value • Can reduce amount of time and energy available to devote to one’s own tasks and impair performance • Social risks to relationships and reputation risks (c) 2011 Wayne Baker

2. Obligation to use content • Social costs of asking for help, such as embarrassment at public disclosure, feelings of incompetence or ignorance • Accepting content can create an unwanted sense of indebtedness (c) 2011 Wayne Baker

3. Obligation to repay content-providers • Should not be free riders who consume resources but do not pay it forward (or back) • Repaying takes time and effort, and can impair productivity • “Defection” is tempting when the obligation to repay is met by paying it forward (c) 2011 Wayne Baker

Overcoming the three obstacles Using formal and informal incentives and sanctions Managing costs and risks of participating Measuring and publicizing use Rewarding reputation for generosity (and shunning those who are not generous) Expressing gratitude for help received by participating more (c) 2011 Wayne Baker

Two groups use online Ripplleffect™ • Part-time evening MBA program • N = 125, divided in two sections • Most strangers or acquaintances • Three-month duration • Participation “quota” • 5 requests + 15 contributions • 10% of final grade • No bonus for going over 5 and 15 (c) 2011 Wayne Baker

Overview of participation 125 users over three months 726 requests (16% higher than expected) 44,394 decisions 2,474 decisions to respond (32% higher than expected) Response is a statistically “rare” event Expected probability of a response = 5.6% (about 3 or 4 responses to request) Eighty-five percent of responses were unilateral (A responded to B’s request but A did not owe B at the time of the decision) (c) 2011 Wayne Baker

Examples of Requests • Advice: Recently the sump pump in my house failed and the partially finished basement got wet. The carpet got soaked, but I managed to dry everything using fans and a dehumidifier. Since the carpet is now stained, I need advice on what to do next. • Information: At work we are redesigning our incentive plan. Does anyone have information regarding incentive plans? • Action: Hi all, I am preparing for CFA L1 in June. If someone is interested in joint study and/or discussion, review for the exam let me know. TIA • Referral: I have [name of strategy course]. I would like an opportunity to meet with a Target Store Manager or local area Director for 1 hour to discuss Target’s strategies for growth, what has worked, what has not, etc. (c) 2011 Wayne Baker

Conclusion • What are your formal and informal incentives and sanctions? (some are implicit) • Do you reward and publicize use? (reputation) • What are your metrics and measures? • Do you manage emotions? (gratitude) (c) 2011 Wayne Baker

Barriers to Adoption with an example of social search media