Cost-Benefit Analysis of Participation in Standardization: Developing a Calculation Tool

Cost-Benefit Analysis of Participation in Standardization: Developing a Calculation Tool

Henk J. de Vries (Rotterdam School of Management, Erasmus University, Rotterdam, Netherlands) and Joey L. Veurink (Rotterdam School of Management, Erasmus University, Rotterdam, Netherlands)
Copyright: © 2017 |Pages: 15
DOI: 10.4018/IJSR.2017010101

Abstract

Participation in standardization costs time and thus money and additionally there are out of pocket costs. Is it worth this investment? This paper seeks to develop and test a method to calculate cost and benefits of participation. Companies can use such a calculation to prepare a decision whether or not to join, during the process whether or not to continue, and afterwards to evaluate if the overall benefits outweigh the cost. Academic researchers can use the same method to analyze impacts of standardization projects.
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Introduction

Companies as well as standards bodies are interested in the financial benefits of participating in standardization. Many studies report a positive impact of standardization. Tables 1 and 2 provide an overview of such studies. Some examine the impact of individual standards, and others investigate the effects of collections of standards. The overview is incomplete, but we have included overview studies that refer to other literature. Many of the available studies address the macro or sector level rather than the company level, and focus on the impact of standards rather than on the impact of involvement in standards development.

Table 1.
Studies on economic impacts of standards
Macro-Economic LevelSector LevelCompany Level
Blind, 2000
Blind & Jungmittag, 2001; 2002; 2005
Blind, Peterson, & Riillo, 2017
Cebr, 2015
Clougherty & Grajek, 2008
DIN, 2011
Otsuki, Wilson, & Sewadeh, 2001
Swann, 2000; 2010
Temple, Spencer, & Witt, 2005
Temple & Urga, 1997
World Trade Organization, 2005
Bergholz, Weiss, & Lee, 2006
Blind, 2001
Cebr, 2015
De Vries & Verhagen, 2016
Shepherd, 2007
Moenius, 2006
De Koning & de Vries, 2009
ISO, 2012
Manders, 2015
De Vries, Bayramoglu, & van der Wiele, 2012
Psomas & Fotopoulos, 2009 Rusjan & Alic, 2010
Sampaio, Saraiva, & Rodrigues, 2009.
Weissinger, 2013

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