An Empirical Evaluation of the Assimilation of Industry-Specific Data Standards Using Firm-Level and Community-Level Constructs

Vertical standards focus on industry-specific product and service descriptions, and are generally implemented using the eXtensible Markup Language (XML). Vertical standards are complex technologies with an organizational adoption locus but subject to inter-organizational dependence and network effects. Understanding the assimilation process for vertical standards requires that both firm and industry-level effects be considered simultaneously. In this paper, the authors develop and evaluate a two-level model of organizational assimilation that includes both firm and industry-level effects. The study was conducted in collaboration with OASIS, a leading cross-industry standards-development organization (SDO), and with ACORD, the principal SDO for the insurance and financial services industries. Results confirm the usefulness of incorporating firm-level and community-level constructs in the study of complex networked technologies. Specifically, the authors’ re-conceptualization of the classical DoI concepts of relative advantage and complexity are shown to be appropriate and significant in predicting vertical standards assimilation. Additionally, community-level constructs such as orphaning risk and standard legitimation are also shown to be important predictors of assimilation.