Competing Standard-Setting Organizations: A Choice Experiment

Paul Moritz Wiegmann,Felix Eggers,Henk J De Vries,Knut Blind

doi:10.1016/j.respol.2021.104427

Abstract

Standard-setting organizations (SSOs) establish goal-directed networks for innovators to jointly shape technology and markets through standards. The degree to which this can succeed depends to a large extent on network characteristics, which may differ substantially between SSOs. Many technological fields face intense competition between SSOs. Choosing the right one is thus a key strategic decision for innovators. Simultaneously, SSOs must reflect members’ preferences in their network set-ups and governance. Yet, little is known about these preferences. Based on extant literature, we derive hypotheses about how three themes of network attributes (membership base, rules, transaction costs) and contextual factors drive decision makers’ preferences. We conduct a comprehensive choice experiment with 141 standardization professionals in the Internet of Things field. Based on our data, we provide a more realistic indication of what firms value in SSOs than has been previously available. We also discuss our results’ implications for studying networks in other contexts.

Highlights

IntroductionInnovators increasingly rely on other parties, e.g., for joint technol ogy and ecosystem development, provision of complementary goods, and technology sharing
Innovators increasingly rely on other parties, e.g., for joint technol ogy and ecosystem development, provision of complementary goods, and technology sharing. This is especially true in contexts of complex systems and technology convergence, such as in the cases of 5G tele communication networks and the Internet of Things (IoT)
Based on our conceptualization of SSOs as goal-directed interorganizational networks, we characterize them by three attri butes: (1) membership base, (2) rules, and (3) transaction costs of participation

Summary

Introduction

Innovators increasingly rely on other parties, e.g., for joint technol ogy and ecosystem development, provision of complementary goods, and technology sharing. This is especially true in contexts of complex systems and technology convergence, such as in the cases of 5G tele communication networks and the Internet of Things (IoT). Engaging in standardization serves multiple important purposes. It (1) allows shaping technology development and its surrounding context Botzem and Dobusch, 2012; Iversen et al, 2004; Tamm Hallstrom and Bostrom, 2010) Such benefits are reflected in the substantial resources that firms often invest in engaging in standardi zation Such benefits are reflected in the substantial resources that firms often invest in engaging in standardi zation (e.g. Leiponen, 2008; Ranganathan et al, 2018)

Methods

Results

Conclusion