Legitimating digital technologies in industry exchange fields: The case of digital signatures

Abstract

Emergent digital technologies need to be legitimated for them to enable new marketplaces to diffuse and scale. The extant literature has emphasized the role of discourse in framing legitimation efforts. Despite recognizing the broader role of technology in the legitimation process, these studies have not examined the specific affordances of digital technologies used by field members and also how this relates to the institutional infrastructure of the field to influence the legitimation process. In our study of an industry exchange field, we drew on archival data between 1997 and 2001 to examine how members of the then emergent e-commerce industry exchange field achieved legitimation of digital signatures in electronic transactions through legislation. Our research contributes to extant research by showing how the legitimation process involves invoking and scaling affordances through sensegiving, translating, and decoupling mechanisms. We also show how affordances are conditioned by the specific institutional infrastructure that supports and enables them, and how issue fields can arise within exchange fields as spaces to (re)negotiate and shape institutional changes. We conclude with implications for further research into the diffusion and scale of digital marketplaces that is of increasing importance in light of recent regulatory debates.