Balance is Key—Insights on the Governance Design of Data Space-Based Ecosystems

Data space-based ecosystems (DSEs) rely on decentralized infrastructures and promote broad member participation to counteract the monopolistic tendencies of platform-based data ecosystems. While this approach enhances fairness for DSE members, it also creates complexity that poses a challenge for effective governance. In this study, we investigate how DSEs can design their governance to integrate these dual goals of fairness and effectiveness. Drawing on a case study of Catena-X, a DSE in the automotive sector, we adopt an exploratory qualitative approach to analyze DSE governance in depth. Our findings reveal four governance dimensions: structures, decisions, relations, and behavior. Across these dimensions, the two goals manifest in different design choices that need to be balanced with each other. This study contributes to the nascent literature on DSEs by providing a nuanced understanding of how they can incorporate both normative principles of fairness and operational aspects fostering effectiveness into their governance.