IDEAS home Printed from
   My bibliography  Save this paper

Interorganizational System Standards Diffusion: The Role of Industry-Based Standards Development Organizations


  • Nelson, Matthew L.

    (Illinois State U)

  • Shaw, Michael J.

    (U of Illinois at Urbana-Champaign)


Integrating cross-company business process standards in an interorganizational system (IOS) context is an emerging phenomenon on several business fronts. The practice is viewed as an enabler towards solidifying business to business connections, streamlining cross-company processes and providing a foundation for web-services. Although the practice is not new, most notably electronic data interchange (EDI) with X12 standards, recent technological innovations have enabled the emergence of IOS standards that are web-enabled, modular, scaleable, cost efficient, and structured around cross-company business process standards. Despite their inherent benefits, the adoption and diffusion of web-based IOS standards has been an extraordinary challenge throughout many industrial groups. This paper examines the diffusion of interorganizational system standards among members of industrial groups where an IOS standards development organization (SDO) exists. A conceptual innovation diffusion model is developed as a basis to understand the factors and determinants concerning the diffusion of IOS standards. The innovation--organizational--environmental (IOE) lens is employed in the research design and extended to include attributes associated with the SDO, cross-company business processes and the perceived network effects. The diffusion process is examined through a multi-stage technology assimilation scale. An empirical study is conducted based on cross-sectional surveys of 102 firms from 10 industrial groups encompassing 15 SDOs. The significant determinants of web-based IOS standards diffusion were found to be: installed base, top management support, feasibility, SDO participation level, direct network effects, mission and conduciveness towards interoperability. Comparisons between determinants of adoption versus deployment stages are provided. We also examine the role of industry-based voluntary-consensus standards development organizations, the IOS standards development process, and industrial group coordination of IOS standards.

Suggested Citation

  • Nelson, Matthew L. & Shaw, Michael J., 2005. "Interorganizational System Standards Diffusion: The Role of Industry-Based Standards Development Organizations," Working Papers 05-0126, University of Illinois at Urbana-Champaign, College of Business.
  • Handle: RePEc:ecl:illbus:05-0126

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. E. Burton Swanson, 1994. "Information Systems Innovation Among Organizations," Management Science, INFORMS, vol. 40(9), pages 1069-1092, September.
    2. Robert G. Fichman & Chris F. Kemerer, 1997. "The Assimilation of Software Process Innovations: An Organizational Learning Perspective," Management Science, INFORMS, vol. 43(10), pages 1345-1363, October.
    3. Randolph B. Cooper & Robert W. Zmud, 1990. "Information Technology Implementation Research: A Technological Diffusion Approach," Management Science, INFORMS, vol. 36(2), pages 123-139, February.
    4. Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-841, August.
    5. Gebauer, Judith & Buxmann, Peter, 2000. "Assessing the Value of Interorganizational Systems to Support Business Transactions," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 36498, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    6. Akbar Zaheer & N. Venkatraman, 1994. "Determinants of Electronic Integration in the Insurance Industry: An Empirical Test," Management Science, INFORMS, vol. 40(5), pages 549-566, May.
    7. Michael L. Katz & Carl Shapiro, 1994. "Systems Competition and Network Effects," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 93-115, Spring.
    8. Dale L. Goodhue, 1995. "Understanding User Evaluations of Information Systems," Management Science, INFORMS, vol. 41(12), pages 1827-1844, December.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecl:illbus:05-0126. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.