Three different ways to skin a cat: financialization in the emergence of national e-ID solutions

Abstract

The growing phenomenon of financialization influences an array of societal dimensions that go beyond the economic realm, to include public policy-making and information technology (IT). This study presents a cross-country analysis of the emergence of national electronic identification (e-ID) solutions as the result of interaction between the financial and the public sector in Denmark, Norway, and Sweden. Drawing on on-line sources, documents, and interviews with key actors in the three cases, we adopt a cross-disciplinary perspective by applying the lens of collective action theory to identify the role of interests, resources, and governance in the emergence of national e-ID solutions. Findings show that different governance solutions can emerge as the result of the convergence of interests and of interdependency of resources between the actors over time. We contribute to research on financialization and IT by proposing a dialectic process model and identifying five mechanisms that drive the process forward.

This is a preview of subscription content, log in to check access.

Figure 1

References

  1. Aanestad, M., and Jensen, T. B. (2011). Building nation-wide information infrastructures in healthcare through modular implementation strategies. The Journal of Strategic Information Systems, 20(2), 161–176.

    Article  Google Scholar 

  2. Andréasson, E. (2011). Utvecklingen av e-legitimationer i Sverige - en studie av det privata och det offentligas roller, Presented at the Statsvetenskapliga förbundets årsmöte, 28 October 2011, Umeå, Sweden.

  3. Arrighi, G. (2007). Adam Smith in Beijing: Lineages of the twenty-first century. London: Verso.

    Google Scholar 

  4. Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.

    Article  Google Scholar 

  5. Bharadwaj, A. (2000). A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation. MIS Quarterly, 24(1), 169–196.

    Article  Google Scholar 

  6. Braa, J., Hanseth, O., Heywood, A., Mohammed, W., and Shaw, V. (2007). Developing Health Information Systems in Developing Countries: The Flexible Standards Strategy. MIS Quarterly, 31(2), 381–402.

    Article  Google Scholar 

  7. Brenner, R. (2009). The Economics of Global Turbulence. New York: Verso.

    Google Scholar 

  8. Constantinides, P., and Barrett, M. (2014). Information Infrastructure Development and Governance as Collective Action. Information Systems Research, 26(1), 40–56.

    Article  Google Scholar 

  9. Cuijpers, C. and Schroers, J. (2014). eIDAS as Guideline for the Development of a Pan European eID Framework in FutureID (Vol. 237, pp. 23–38). Presented at the Open Identity Summit 2014, Gesellschaft für Informatik.

  10. Danish Ministry of Finance. (1992). Effektiv EDB i staten. Copenhagen: Danish Ministry of Finance.

    Google Scholar 

  11. Davis, G. F. (2009). Managed by the Markets: How Finance Re-Shaped America. Oxford: Oxford University Press.

    Google Scholar 

  12. de Reuver, M., Verschuur, E., Nikayin, F., Cerpa, N., and Bouwman, H. (2015). Collective Action for Mobile Payment Platforms: A Case Study on Collaboration Issues between Banks and Telecom Operators. Electronic Commerce Research and Applications, 14(5), 331–344.

    Article  Google Scholar 

  13. Drnevich, P., and Croson, D. (2013). Information Technology and Business-Level Strategy: Toward an Integrated Theoretical Perspective. MIS Quarterly, 37(2), 483–509.

    Article  Google Scholar 

  14. Eaton, B., Hallingby, H. K., Nesse, P.-J., and Hanseth, O. (2014). Achieving Payoffs from an Industry Cloud Ecosystem at BankID. MISQ Executive, 13(4), 223–235.

    Google Scholar 

  15. Eisenhardt, K. M. (1989). Building Theories from Case Study Research. Academy of Management Review, 14(4), 532–550.

    Google Scholar 

  16. Epstein, G. A. (2005). Financialization and the World Economy. Cheltenham: Edward Elgar.

    Google Scholar 

  17. Erturk, I., Froud, J., Johal, S., Leaver, A., and Williams, K. (2007). The Democratization of Finance? Promises, Outcomes and Conditions. Review of International Political Economy, 14(4), 553–575.

    Article  Google Scholar 

  18. Erturk, I., and Solari, S. (2007). Banks as Continuous Reinvention. New Political Economy, 12(3), 369–388.

    Article  Google Scholar 

  19. Fligstein, N., and Shin, T. (2004). The Shareholder Value Society: Changes in Working Conditions and Inequality in the U.S., 1975–2000. In K. Neckerman (Ed.), Social Inequality (pp. 401–432). New York: Russell Sage Foundation.

    Google Scholar 

  20. Foray, D. (1994). Users. Standards and the Economics of Coalitions and Committees, Information Economics and Policy, 6(3), 269–293.

    Google Scholar 

  21. Foster, J. B. (2007). The Financialization of Capitalism. Monthly Review, 58(11), 1–11.

    Article  Google Scholar 

  22. Foster, J. B. (2010). The Financialization of Accumulation. Monthly Review, 62(5), 1–17.

    Article  Google Scholar 

  23. Gozman, D., and Currie, W. (2014). The role of Investment Management Systems in Regulatory Compliance: A Post-Financial Crisis Study of Displacement Mechanisms. Journal of Information Technology, 29(1), 44–58.

    Article  Google Scholar 

  24. Gregor, S. (2006). The Nature of Theory in Information Systems. MIS Quarterly, 30(3), 611–642.

    Article  Google Scholar 

  25. Grönlund, Å. (2010). Electronic Identity Management in Sweden: Governance of a Market Approach. Identity in the Information Society, 3(1), 195–211.

    Article  Google Scholar 

  26. Gustafsson, M., and Wihlborg, E. (2013). Safe On-Line e-Services Building Legitimacy for e-Government: A Case Study of Public e-services in Education in Sweden. eJournal of eDemocracy and Open Government, 5(2), 155–173.

    Google Scholar 

  27. Hanseth, O., and Aanestad, M. (2003). Design as Bootstrapping. On the Evolution of ICT Networks in Health Care. Methods of Information in Medicine, 42(4), 384–391.

    Google Scholar 

  28. Hanseth, O., and Lyytinen, K. (2010). Design Theory for Dynamic Complexity in Information Infrastructures: The Case of Building Internet. Journal of Information Technology, 25(1), 1–19.

    Article  Google Scholar 

  29. Hansteen, K., Ølnes, J. and Alvik, T. (2016). Nordic Digital Identification (eID). Nordic Council of Ministers.

  30. Hardie, I., and Howarth, D. (2009). Die Krise But Not La Crise? The Financial Crisis and the Transformation of German and French Banking Systems. Journal of Common Market Studies, 47(5), 1017–1039.

    Article  Google Scholar 

  31. Hedman, J., and Kalling, T. (2003). The Business Model Concept: Theoretical Underpinnings and Empirical Illustrations. European Journal of Information Systems, 12(1), 49–59.

    Article  Google Scholar 

  32. Hedström, K., Karlsson, F., and Söderström, F. (2016). Challenges of Introducing a Professional eID Card within Health Care. Transforming Government: People, Process and Policy, 10(1), 26–46.

    Article  Google Scholar 

  33. Hoff, J. V., and Hoff, F. V. (2010). The Danish eID Case: Twenty years of Delay. Identity in the Information Society, 3(1), 155–174.

    Article  Google Scholar 

  34. Johansson, S. (2004). Lokaldemokrati i informationsalderen. In J. Hoff (Ed.), Danmark som informationsamfund. Muligheder og barrierer for politik og demokrati (pp. 226–250). Aarhus: Aarhus Universitetsforlag.

    Google Scholar 

  35. Klein, S. and Schellhammer, S. (2011). Developing IOIS as collective action: A cross-country comparison in the health care sector. In Proceedings of the IEEE Hawaii International Conference on System Sciences (Kauai, USA).

  36. Krippner, G. R. (2005). The Financialization of the American Economy. Socio-Economic Review, 3(2), 173–208.

    Article  Google Scholar 

  37. Krippner, G. R. (2011). Capitalizing on Crisis. Cambridge, MA: Harvard University Press.

    Google Scholar 

  38. Kubicek, H. (2010). Introduction: Conceptual Framework and Research Design for a Comparative Analysis of National e-ID Management Systems in Selected European Countries. Identity in the Information Society, 3(1), 5–26.

    Article  Google Scholar 

  39. Kubicek, H., and Noack, T. (2010). Different Countries-Different Paths Extended Comparison of the Introduction of eIDs in eight European Countries. Identity in the Information Society, 3(1), 235–245.

    Article  Google Scholar 

  40. Kumar, N., Stern, L. W., and Anderson, J. C. (1993). Conducting Interorganizational Research Using Key Informants. Academy of Management Journal, 36(6), 1633–1651.

    Article  Google Scholar 

  41. Lapavitsas, C. (2013). Profiting Without Producing: How Finance Exploits Us All. London: Verso Books.

    Google Scholar 

  42. Lee, A. S., and Baskerville, R. L. (2003). Generalizing Generalizability in Information Systems Research. Information Systems Research, 14(3), 221–243.

    Article  Google Scholar 

  43. Lentner, G. M., and Parycek, P. (2016). Electronic identity (eID) and Electronic Signature (eSig) for eGovernment Services—A Comparative Legal Study. Transforming Government: People, Process and Policy, 10(1), 8–25.

    Article  Google Scholar 

  44. Leyshon, A., and Thrift, N. (2007). The Capitalization of Almost Everything—The future of Finance and Capitalism. Theory Culture & Society, 24(7–8), 97–115.

    Article  Google Scholar 

  45. Lin, K.-H., and Tomaskovic-Devey, D. (2013). Financialization and U.S. Income Inequality, 1970–2008. American Journal of Sociology, 118(5), 1284–1329.

    Article  Google Scholar 

  46. Lyon, D. (2009). Identifying Citizens: ID Cards as Surveillance. Cambridge: Polity Press.

    Google Scholar 

  47. Markus, M. L., Steinfield, C. W., Wigand, R. T., and Minton, G. (2006). Industry-Wide Information Systems Standardization as Collective Action: The Case of the U.S. Residential Mortgage Industry. MIS Quarterly, 30(1), 439–465.

    Article  Google Scholar 

  48. Medaglia, R., Hedman, J., and Eaton, B. (2017). Public–Private Collaboration in the Emergence of a National Electronic Identification Policy: The Case of NemID in Denmark. In Proceedings of 50th Hawaii International Conference on System Sciences (Hawaii, USA), p. 2782–2791. http://hdl.handle.net/10125/41492.

  49. Melin, U., Axelsson, K., and Söderström, F. (2016). Managing the Development of e-ID in a Public e-service Context: Challenges and Path Dependencies from a Life-cycle Perspective. Transforming Government: People, Process and Policy, 10(1), 72–98.

    Article  Google Scholar 

  50. Nikayin, F. (2014). Common Platform Dilemmas: Collective Action and the Internet of Things. PhD Thesis, Delft University of Technology.

  51. Nikayin, F., De Reuver, M., and Itälä, T. (2013). Collective Action for a Common Service Platform for Independent Living Services. International Journal of Medical Informatics, 82(10), 922–939.

    Article  Google Scholar 

  52. OECD (2016). NemIDDanish National eID and Digital Signature Scheme. Retrieved March 10, 2016, from https://www1.oecd.org/governance/observatory-public-sector-innovation/innovations/page/nemiddanishnationaleidanddigitalsignaturescheme.htm#tab_implementation.

  53. Oliver, P. E., and Marwell, G. (2001). Whatever Happened to Critical Mass Theory? A Retrospective and Assessment, Sociological Theory, 19(3), 292–311.

    Google Scholar 

  54. Olson, M. (1965). The Logic of Collective Action: Public Goods and the Theory of Groups. Boston: Harvard University Press.

    Google Scholar 

  55. Osborne, S. P., Radnor, Z., and Nasi, G. (2013). A New Theory for Public Service Management? Toward a (Public) Service-Dominant Approach. American Review of Public Administration, 43(2), 135–158.

    Article  Google Scholar 

  56. Ostrom, E. (2014). Collective action and the Evolution of Social Norms. Journal of Natural Resources Policy Research, 6(4), 235–252.

    Article  Google Scholar 

  57. Painceira, J. P. (2012). Developing Countries in the Era of Financialisation: From Deficit-Accumulation to Reserve-Accumulation. In S. Budgen, S. Edwards, M. Linden, and P. Thomas (Eds.), Financialization in Crisis (pp. 185–215). Leiden: Brill.

    Google Scholar 

  58. Pettigrew, A. M. (1985). Contextualist research and the study of organizational change processes. In E. Lawler (Ed.), Doing Research that is Useful for Theory and Practice. San Francisco, CA: Jossey Bass.

    Google Scholar 

  59. Porter, M. E. (1980). Competitive Strategy. New York: Free Press.

    Google Scholar 

  60. Porter, M. E. (1985). Competitive Advantage. New York: Free Press.

    Google Scholar 

  61. Ranerup, A., Zinner-Henriksen, H., and Hedman, J. (2016). An Analysis of Business Models in Public Service Platforms. Government Information Quarterly, 31(1), 6–14.

    Article  Google Scholar 

  62. Rao, H., Morrill, C., and Zald, M. N. (2000). Power Plays: How Social Movements and Collective Action Create New Organizational Forms. In B. M. Staw and R. I. Sutton (Eds.), Research in Organizational Behavior (pp. 237–281). New York: Elsevier/JAI.

    Google Scholar 

  63. Sandén, W. (1999). The Net as a Marketplace—the Swedish experience, Teldok Report 123E, KFB – Kommunikationsforskningsberedningen and TELDOK, Stockholm, pp. 18–27.

  64. Seltsikas, P., and O’Keefe, R. M. (2010). Expectations and Outcomes in Electronic Identity Management: The Role of Trust and Public Value. European Journal of Information Systems, 19(1), 93–103.

    Article  Google Scholar 

  65. Söderström, F. (2012). The National eID in Sweden: An Actor- Network Perspective. In: The PhD Colloquium of the 11th IFIP E-Government Conference, Kristiansand, Norway.

  66. SOU (2010). E-legitimationsnämnden och Svensk e-legitimation: Betänkande av Utredningen om bildande av en e-legitimationsnämnd. Stockholm: Fritze.

    Google Scholar 

  67. Van de Ven, A. H., and Poole, M. S. (1995). Explaining Development and Change in Organizations. Academy of Management Review, 20(3), 510–540.

    Google Scholar 

  68. van der Zwan, N. (2014). Making Sense of Financialization. Socio-Economic Review, 12(1), 99–129.

    Article  Google Scholar 

  69. VERVA (2008). Slutrapport om säkert elektroniskt informationsutbyte och säker hantering av elektroniska handlingar. Stockholm: Verket för förvaltningsutveckling.

    Google Scholar 

  70. Walsham, G. (1995). Interpretive Case Studies in IS research: Nature and Method. European Journal of Information Systems, 4(2), 74–81.

    Article  Google Scholar 

  71. Whitley, E. A., and Hosein, I. R. (2008). Doing the Politics of Technological Decision Making: Due Process and the Debate about Identity Cards in the UK. European Journal of Information Systems, 17(6), 668–677.

    Article  Google Scholar 

  72. Wihlborg, E. (2013). Secure eID (Electronic Identification) in the Intersection of Politics and Technology. International Journal of Electronic Governance, 6(2), 143–151.

    Article  Google Scholar 

  73. Wixom, B. H., and Watson, H. J. (2001). An Empirical Investigation of the Factors Affecting Data Warehousing Success. MIS Quarterly, 25(1), 17–41.

    Article  Google Scholar 

  74. Yin, R. K. (1994). Case Study Research: Design and Methods. Newbury Park: Sage Publications.

    Google Scholar 

Download references

Acknowledgements

The authors would like to thank Telenor Research and Future Studies for the funding that made this research possible. We are indebted to those we interviewed for their interest, help and support. Special thanks to Frances D’Silva at Nets Norway AS, who was instrumental in helping to establish this study.

Author information

Affiliations

Authors

Corresponding author

Correspondence to Ben Eaton.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Eaton, B., Hedman, J. & Medaglia, R. Three different ways to skin a cat: financialization in the emergence of national e-ID solutions. J Inf Technol 33, 70–83 (2018). https://doi.org/10.1057/s41265-017-0036-8

Download citation

Keywords

  • financialization
  • e-ID
  • collective action
  • cross-country comparison
  • case study