Strategies of European standardization

Why do firms select different international venues for cooperation in setting standards? Specifically, why do firms choose regional or bilateral strategies for standard-setting, when global standard-setting institutions already exist? We argue that while strong economic reasons exist for setting compatible international standards, the standard-setting process is often used more as a competitive tool than as a means of expanding networks and markets internationally. Moreover, the selection of a standards strategy also depends on the standard-setting institutions available to firms. Institutions that provide firms with a higher level of influence either through the exclusion of rivals or by advantageous decision-making mechanisms are more likely to be selected as part of the firm's strategy. Thus, it is the interaction of interests and political institutions that best explains why overlapping and competing strategies are often chosen.