Scaling Market-Based Governance for Disruptive Technologies and Innovation
Aaron T. McDonald, Cătălin Raţiu, Beverlee B. Anderson · Academy of Management Proceedings · 2024
Disruptive technologies and innovations (DTI), such as artificial intelligence, big data, and cryptocurrencies, are increasing in creation, development, and adoption rates. As such, DTIs impact on markets and society is growing in prominence, and DTI governance is increasing in importance. Yet, DTI governance has remained challenging given the high knowledge barriers to understanding the technology and how quickly DTIs develop and deploy. Given these challenges and the growing impact of DTIs, we propose a scalable market-based governance model for DTIs. This conceptual framework utilizes an independent oversight board at the firm level to mitigate the information asymmetry between the governing body and the governed DTI firm. The independent oversight board will then expand to a social alliance and eventually create an industry association to produce standards and practices for the DTI industry. We discuss the model’s theoretical and practical contributions.