Analysis of Firms’ Incentives to Control the Standard Development Process

29 Pages Posted: 10 Apr 2020

Date Written: March 20, 2020

Abstract

We study how competitive, technological and network incentives influence firms participation behaviour within the standard development process. We focus on firms representing architecture-level and implementer-level positions in the wireless telecommunications industry value chain. We also investigate how the value of a firm’s proprietary technology influences its participation behaviour. We find evidence that firms representing architecture and implementer-level positions are more likely to promote technical features. Furthermore, we find that firms representing the architecture-level and implementer-level positions with more valuable proprietary technology are more likely to promote technical features than their intra-segmental competitors with less valuable proprietary technology. These findings have important implications for the emerging stream of research on standards development organizations.

Keywords: standard development organizations, wireless telecommunications, proprietary technology

JEL Classification: L14, L24, D23

Suggested Citation

Devarakonda, Shivaram, Analysis of Firms’ Incentives to Control the Standard Development Process (March 20, 2020). TILEC Discussion Paper No. DP2020-005, Available at SSRN: https://ssrn.com/abstract=3557807 or http://dx.doi.org/10.2139/ssrn.3557807

Shivaram Devarakonda (Contact Author)

Tilburg University ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Purdue University ( email )

West Lafayette, IN 47907-1310
United States
765 494 4517 (Phone)

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