This article builds a theoretical framework to help explain governance patterns in global value chains. It draws on three streams of literature – transaction costs economics, production networks, and technological capability and firm-level learning – to identify three variables that play a large role in determining how global value chains are governed and change. These are: (1) the complexity of transactions, (2) the ability to codify transactions, and (3) the capabilities in the supply-base. The theory generates five types of global value chain governance – hierarchy, captive, relational, modular, and market – which range from high to low levels of explicit coordination and power asymmetry. The article highlights the dynamic and overlapping nature of global value chain governance through four brief industry case studies: apparel, bicycles, horticulture and electronics.

de jure standard setting at the Internet Engineering Task Force The emergence of a new industry standard can establish some firms in positions of market dominance and relegate others to obscurity. As a result, the creation of new technical standards is a high-stakes activity—particularly when product markets are characterized by strong network effects or systems competition. Formal Standards Developing Organizations (SDOs) strive to serve as technical meritocracies that promote collaborative technology development and industry coordination. This paper considers the effectiveness of the consensus approach to standards development when participants have a vested interest in the outcome of the standard setting process. In particular, I focus on the relationship between the commercial stakes of the standard setting process and lengthy delays in the committee decision-making process. The paper begins with a formal model that yields predictions about the relationship between vested interest, committee size, and the duration of the standard setting process. I test these predictions using a unique data set that measures

The technology of "the Internet" is not static. Although its "end-to-end" architecture has made this "connection-less" communications system readily "extensible," and highly encouraging to innovation both in hardware and software applications, there are strong pressures for engineering changes. Some of these are wanted to support novel transport services (e.g. voice telephony, real-time video); others would address drawbacks that appeared with opening of the Internet to public and commercial traffic -- e.g., the difficulties of blocking delivery of offensive content, suppressing malicious actions (e.g.

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Despite intense coverage of the rapid growth of XML technologies, little is known about the forces shaping their adoption by organizations. This paper provides insight into these processes via unstructured interviews with four global organizations. Despite the small number of study participants, some interesting cross-industry patterns worthy of further study emerge. Among them are indications that a lack of recognized industry standards slows market adoption of XML technologies, and that organizations are building internal expertise in anticipation of future standards-based work. Balance of power in customer/supplier relationships also emerges as a significant factor. Of the three types of standards-setting efforts acknowledged in the literature (free market forces, industry alliances, and government intervention), only the first two can be represented in this study. There have not been any significant efforts by governments to declare standard XML specifications. Thus, the organizations interviewed for this study represent only free market efforts and initiatives by industry alliances. Further study is recommended in order to ascertain the presence of these effects and their extent

economic and public policy issues. The SIEPR Discussion Paper Series reports on research and policy

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This report analyzes the sources and uses of advanced technology in the service sector, identifies barriers to more widespread use, and identifies policy options to ameliorate these barriers. In addition to the overview information, it contains case studies on the following key service sector industries: retail banking, home entertainment, and health care. Effective technology policy recognizes the complementary roles played by the private sector, government organizations, and universities in creating a robust technological infrastructure that supports the development, diffusion, and implementation of technology. These organizations have widely varied objectives and incentives; still they must interact and collaborate to support the optimum level and pace of technology development and implementation. Because technology development entails high levels of risk compared to other types of investment, economic policy generally supports some type of incentive structure. The most commonly proposed form is a broadly applicable policy, such as a tax incentive. More specific technology barriers often exist as well. These too are amenable to policy action. To formulate such actions requires a deeper understanding of the specific market environments in which the technologies are developed and applied. The service sector is the largest and most rapidly growing segment of the U.S. economy. It accounts for roughly three-fourths of value added in GDP, and it has been growing at about 10 times the rate of the non-service sector. From 1984 to 1994, the U.S. economy grew 33.12 percent in constant 1987 dollars; service industries as a whole grew by 46.21 percent, while the non-service industries grew by just 4.63 percent. The service sector purchases large quantities of information technol...

This dissertation analyses two different paradigms used for the development of a software product, Operating Systems. The targets of research are two groups that operate in very different ways, Microsoft Corporation and the Linux Community. Through the observation of the strategies and methodologies used by these actors in their work, and taking into account the constraints to which they are subject, assesses, from a dynamic perspective, the relative strengths and weaknesses of their competing paradigms. In the dissertation I will analyse the efficiency of the development processes that they have adopted for the design, improvement and enhancement of their products. A theoretical model based on Giovanni Dosis "Technological Paradigms" framework, incorporating institutional, industrial, social and cultural aspects, is constructed and specifically adapted to the software industry case. The private management of technology issues considered during the analysis of the development processes inside different organisations are linked to questions having to do with the evolution of high technology, networked, markets. This analysis lends to assessment of some rationales and potential strategies for public intervention in the Operating Systems industry, taking into account some relevant concerns that have been raised about competitive issues and dominant position in this market, one of strategic importance for the future development of the Information Society

The development and diffusion of network markets and underlying standards is an important domain in IS research. Yet, there is no sound theory nor practice to fully understand the complex mechanisms behind networks of users who are tied together by compatibility requirements as is frequently witnessed in information and communication networks. The goal of this paper is to identify key determinants of the diffusion of network effect goods by studying the battle between two mobile communication standards to propose possible diffusion paths. In the early phase of diffusion, the adoptor of the new standard benefits from direct network effects with other adopters and the estimated indirect network benefits when additional content and services will be provided. The diffusion process starts therefore with early adopters due to the existence of direct network effects in the first place and force-up by additional indirect network effects which attract further adopters. We call this effect the network effect helix, with positive feedbacks on the ongoing diffusion process.