Institutions, Organizations, and Technological Innovations: The Dynamic Development of Smart Ticketing Schemes in London’s Urban Transportation System

Abstract

The integration of different modes of transportation can be seen as a way of motivating a shift from private car use to more sustainable modes of transportation. Although certain forms of integration have existed for a long time, information and communication technologies (ICTs) have recently opened the way for new possibilities. At the forefront of these developments, smart cards have demonstrated their potential to facilitate multimodal journeys and benefit urban transportation systems. However, while there has been sufficient research into understanding the benefits of smart cards, the present chapter considers the processes that support their emergence. Building on a theoretical framework based on co-evolution theory and systems of innovation, we use archival data to explore the case of the London transportation ticketing system, which has evolved over the last years, from the introduction of the Oyster card in 2004 to the implementation of contactless payment cards, which began in 2012. While it is evident that institutions influence how organizations interact with one another, and how this leads to the emergence of technological innovation, we also highlight the importance of considering the influence that technological innovations have on organizations, which can shape new institutional developments through their interactions. Ultimately, this chapter sheds light on what determines technological innovations in urban transportation systems and, by proposing a new theoretical framework, attempts to bridge the co-evolution and systems of innovation literature.