Coalition formation in standard-setting alliances
Management Science
Information rules: a strategic guide to the network economy
Information rules: a strategic guide to the network economy
Information technology standards and standardization
Research Report: Empirical Test of an EDI Adoption Model
Information Systems Research
Assessing and managing the value of supply chain collaboration: developing strategies for b2b e-commerce with web-based process sharing
A Multichannel Model of Separating Equilibrium in the Face of the Digital Divide
Journal of Management Information Systems
Journal of Management Information Systems
A Model of Neutral B2B Intermediaries
Journal of Management Information Systems
What Motivates Firms to Contribute to Consortium-Based E-Business Standardization?
Journal of Management Information Systems
A characteristics framework for Semantic Information Systems Standards
Information Systems and e-Business Management
Drivers of Organizational Participation in XML-based Industry Standardization Efforts
International Journal of Enterprise Information Systems
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E-business standards are critical for electronic interorganizational transactions. In many industries, firms develop e-business standards collaboratively in a standard consortium. They can choose to become a leading developer, a passive adopter, or a nonadopter. To capture firms' strategic choices at the development stage and the adoption stage, which are related due to the double-sided interactions between the two stages, we propose an integrated model of consortium-based e-business standardization. We find that firms' payoffs from standard adoption increase with the intrinsic value of the standard, but developers' benefits increase faster than passive adopters' benefits. The model examines the value of passive adopters to the standard development via network externalities, even though passive adopters do not contribute directly in the consortium. We find that passive adopters do not always exist. There are two possible equilibria for the endogenous formation of the developer network and the adopter network, one without passive adopters and one with passive adopters. How external conditions affect the endogenous formation of the consortium depends upon whether there are passive adopters in the equilibrium. Based on our analysis, we recommend strategies to e-business standard consortia to motivate firms' participation and enhance social welfare created by the standard.