Paper Type

Short

Paper Number

PACIS2026-1755

Description

Data spaces, as inter-organizational information systems (IOISs), provide an infrastructure for inter-firm data transactions and value co-creation. Despite growing global attention, many data space initiatives face sustainability challenges. We develop a multi-scenario game-theoretic model to demonstrate the benefits of data spaces, identify a key sustainability challenge—supplier defection—and examine potential remedies. The results show that (1) data spaces increase suppliers’ payoffs and social welfare; (2) suppliers’ incentives to establish independent monopolies are a primary driver of sustainability failure; and (3) stronger member subsidies and higher compliance costs can weaken defection incentives. This study clarifies the economic mechanisms underlying the sustainability dilemma of data spaces and offers governance implications for designing IOISs and governing inter-firm data transactions.

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11-Strategy

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Jul 5th, 12:00 AM

The Construction Dilemma of Data Spaces and Paths to Resolution

Data spaces, as inter-organizational information systems (IOISs), provide an infrastructure for inter-firm data transactions and value co-creation. Despite growing global attention, many data space initiatives face sustainability challenges. We develop a multi-scenario game-theoretic model to demonstrate the benefits of data spaces, identify a key sustainability challenge—supplier defection—and examine potential remedies. The results show that (1) data spaces increase suppliers’ payoffs and social welfare; (2) suppliers’ incentives to establish independent monopolies are a primary driver of sustainability failure; and (3) stronger member subsidies and higher compliance costs can weaken defection incentives. This study clarifies the economic mechanisms underlying the sustainability dilemma of data spaces and offers governance implications for designing IOISs and governing inter-firm data transactions.