Collaboration in international standardization committees: A case analysis from the postal sector

Abstract

Electricity, telecommunication, and postal networks are networked systems. It is inherent in the structure of networked systems that many network components are required for the provision of a typical service. Under the effect of new institutional developments, such as globalization and liberalization, these components are owned by different firms. Therefore, the question of compatibility and interconnection among network components has become of paramount importance. This paper is built on a case study of the so-called International Postal System (IPS). The case analysis will focus on how firms collaborate through voluntary standard setting committees, and why such collaboration is significant in these networks. Rival firms collaborate in standard setting committees, in which they can exchange valuable knowledge about new technologies. This collaborative strategy allows them to align positions on technical options, improve their network's public value, and enhance their efficiency and innovativeness.