Abstract
Academic research does not yet have a precise understanding of what drives firms' decisions to participate in standardsetting organizations (SSO). We explore the relationship among consortium participation decisions, firm-level R&D investment intensity and production efficiency. We develop theoretical arguments that capture the tradeoffs for joining. They include benefits from steering the future direction of standards, and R&D and knowledge spillovers from other members. Also present are costs from membership fees and risks of free-riding through information disclosures on intellectual property. We develop hypotheses for empirical analysis. We use a logic model to evaluate managerial decisions to join SSOs involving a large data set of publicly-traded consumer electronics firms. The data cover five SSOs in the consumer electronics industry that joined SSOs by 2006. Our results provide evidence that the likelihood of joining an SSO increases with a firm's R&D investment intensity. More efficient firms are more likely to join too.
| Original language | English (US) |
|---|---|
| Title of host publication | Proceedings of the 41st Annual Hawaii International Conference on System Sciences 2008, HICSS |
| DOIs | |
| State | Published - Sep 16 2008 |
| Event | 41st Annual Hawaii International Conference on System Sciences 2008, HICSS - Big Island, HI, United States Duration: Jan 7 2008 → Jan 10 2008 |
Publication series
| Name | Proceedings of the Annual Hawaii International Conference on System Sciences |
|---|---|
| ISSN (Print) | 1530-1605 |
Other
| Other | 41st Annual Hawaii International Conference on System Sciences 2008, HICSS |
|---|---|
| Country | United States |
| City | Big Island, HI |
| Period | 1/7/08 → 1/10/08 |
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Keywords
- Economics
- Empirical research
- IT investments
- R&D
- Spillovers
- Standard-setting organizations
- Standards
- Theory development
Cite this
Do firm R&D investments drive decisions to join? On the value of standard-setting organizations in the consumer electronics industry. / Gupta, Alok; Kauffman, Robert J.; Wu, Amy Ping.
Proceedings of the 41st Annual Hawaii International Conference on System Sciences 2008, HICSS. 2008. 4439015 (Proceedings of the Annual Hawaii International Conference on System Sciences).Research output: Chapter in Book/Report/Conference proceeding › Conference contribution
}
TY - GEN
T1 - Do firm R&D investments drive decisions to join? On the value of standard-setting organizations in the consumer electronics industry
AU - Gupta, Alok
AU - Kauffman, Robert J.
AU - Wu, Amy Ping
PY - 2008/9/16
Y1 - 2008/9/16
N2 - Academic research does not yet have a precise understanding of what drives firms' decisions to participate in standardsetting organizations (SSO). We explore the relationship among consortium participation decisions, firm-level R&D investment intensity and production efficiency. We develop theoretical arguments that capture the tradeoffs for joining. They include benefits from steering the future direction of standards, and R&D and knowledge spillovers from other members. Also present are costs from membership fees and risks of free-riding through information disclosures on intellectual property. We develop hypotheses for empirical analysis. We use a logic model to evaluate managerial decisions to join SSOs involving a large data set of publicly-traded consumer electronics firms. The data cover five SSOs in the consumer electronics industry that joined SSOs by 2006. Our results provide evidence that the likelihood of joining an SSO increases with a firm's R&D investment intensity. More efficient firms are more likely to join too.
AB - Academic research does not yet have a precise understanding of what drives firms' decisions to participate in standardsetting organizations (SSO). We explore the relationship among consortium participation decisions, firm-level R&D investment intensity and production efficiency. We develop theoretical arguments that capture the tradeoffs for joining. They include benefits from steering the future direction of standards, and R&D and knowledge spillovers from other members. Also present are costs from membership fees and risks of free-riding through information disclosures on intellectual property. We develop hypotheses for empirical analysis. We use a logic model to evaluate managerial decisions to join SSOs involving a large data set of publicly-traded consumer electronics firms. The data cover five SSOs in the consumer electronics industry that joined SSOs by 2006. Our results provide evidence that the likelihood of joining an SSO increases with a firm's R&D investment intensity. More efficient firms are more likely to join too.
KW - Economics
KW - Empirical research
KW - IT investments
KW - R&D
KW - Spillovers
KW - Standard-setting organizations
KW - Standards
KW - Theory development
UR - http://www.scopus.com/inward/record.url?scp=51449110870&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=51449110870&partnerID=8YFLogxK
U2 - 10.1109/HICSS.2008.128
DO - 10.1109/HICSS.2008.128
M3 - Conference contribution
AN - SCOPUS:51449110870
SN - 0769530753
SN - 9780769530758
T3 - Proceedings of the Annual Hawaii International Conference on System Sciences
BT - Proceedings of the 41st Annual Hawaii International Conference on System Sciences 2008, HICSS
ER -