With or without you: The countervailing forces and effects of process standardization

Abstract

Process standardization is defining a new era of business process revolution across many industries and contexts in electronic commerce in which the impetus for cooperation is greater than the drivers of competition. As industries consolidate and competition rises, firms are increasingly pursuing process standardization to further enhance process management and reap the benefits of standards. The current literature explores and analyzes standards and standardization at the IT, firm, and industry levels. The complex nature of process standardization requires a reorientation of the existing approaches to analysis to understand the countervailing forces and effects. This article introduces a robust framework that captures the dynamics of process standardization across four levels of analysis: IT innovation, firm, industry, and economy. It also presents the cascading effects that occur as we traverse through the different levels. We use this framework to draw conclusions for appropriate directions in research that will enable greater theoretical and managerial understanding of the related issues.