INDUSTRY-WIDE INFORMATION SYSTEMS STANDARDIZATION AS COLLECTIVE ACTION: THE CASE OF THE U.S. RESIDENTIAL MORTGAGE INDUSTRY.

Author List: Markus, M. Lynne; Steinfield, Charles W.; Wigand, Rolf T.; Minton, Gabe;
MIS Quarterly, 2006, Volume 30, Issue 0, Page 439-465.
Vertical information systems (VIS) standards are technical specifications designed to promote coordination among the organizations within (or across) vertical industry sectors. Examples include the bar code, electronic data interchange (EDI) standards, and RosettaNet business process standards in the electronics industry. This contribution examines VIS standardization through the lens of collective action theory, applied in the literature to information technology product standardization, but not yet to VIS standardization, which is led by heterogeneous groups of user organizations rather than by IT vendors. Through an intensive case analysis of VIS standardization in the U.S. residential mortgage industry, VIS standardization success is shown to be as problematic as IT product standardization success, but for different reasons. VIS standardization involves two linked collective action dilemmas--standards development and standards diffusion--with different characteristics, such that a solution to the first may fail to resolve the second. Whereas prior theoretical and empirical research shows that IT product standardization efforts tend to splinter into rival factions that compete through standards wars in the marketplace, successful VIS Standards consortia must encompass heterogeneous groups of user organizations and IT vendors without fragmenting. Some tactics successfully used to solve the collective action dilemma of VIS standardization (e.g., governance mechanisms and policies about intellectual property protection) are also used by IT product standardization efforts, but some are different, and successful VIS standardization requires a package of solutions tailored to fit and jointly resolve the specific dilemmas of particular VIS standards initiatives.
Keywords: collective action; governance; heterogeneity of resources and interests; institutional support; intellectual property rights; public goods theory; technical design issues; Vertical IS standards and standardization
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#117 0.317 standards interorganizational ios standardization standard systems compatibility effects cooperation firms industry benefits open interoperability key heterogeneous vertical propose vendors collective
#154 0.100 memory support organizations information organizational requirements different complex require development provides resources organization paper transactive depth process outside difficult breadth
#104 0.092 action research engagement principles model literature actions focus provides developed process emerging establish field build guidance known project elements insights
#89 0.074 product products quality used characteristics examines role provide goods customization provides offer core sell key potential stronger insights design initial
#185 0.071 change organizational implementation case study changes management organizations technology organization analysis successful success equilibrium radical efforts initiatives managing resistance individuals
#110 0.065 theory theories theoretical paper new understanding work practical explain empirical contribution phenomenon literature second implications different building based insights need
#201 0.056 piracy goods digital property intellectual rights protection presence legal consumption music consumers enforcement publisher pirate producers policies copyright provision profits
#119 0.050 implementation systems article describes management successful approach lessons design learned technical staff used effort developed organization experiences large managing discusses