Cooperation and competition standards-setting activities in the digitization era: The case of wireless information devices

Abstract

Standards-setting activities were traditionally characterized by either pure competition or cooperation activities. Recent studies, however, have proposed that a shift in standards-setting activities is taking place in which a hybrid mode is observed, and that digital convergence is one driving force behind this shift. Little is known about the nature of this hybrid mode and the empirical evidence that has supported such propositions is still weak. To address this gap, this paper develops a framework in which five attributes are examined to determine the level of cooperative and competitive standards-setting activities, during the development and the sponsoring stages, in the Wireless Information Devices Operating System (WID-OS) battle. The empirical evidence drawn from this standardization battle suggests that digital convergence drives firms to pursue cooperative and competitive standards-setting activities throughout the battle. We conclude by exploring future research and practical implications.