Development Dynamics of Digital Infrastructure and Organization: The Case of Global Payments Innovation

Abstract: This paper examines how the development of digital infrastructure shapes organizations. Drawing on four case studies across the global payment infrastructure, we explain the development of digital infrastructure and organization as taking place through three causal development mechanisms—namely, architectural, institutional, and functional. Each mechanism reveals a distinct development path of digital infrastructure based on the shaping of structure, the shaping of behavior, and the shaping of services. Furthermore, we outline how each development path is mediated by the other two mechanisms and propose six consequent propositions. The contribution of the study lies in presenting a conceivable explanation for the nested evolutionary paths in the development of digital infrastructure and organization