Chapter 3 The Computerization Movement In The US Home Mortgage Industry : Automated Underwriting From 1980 To 2004

This paper reports on an empirical investigation of a particular computerization movement—the diffusion of automated underwriting in the US home mortgage industry—over a twenty-plus year timeframe. Building on and extending seminal work by Kling and Iacono (1988, 1995, 2001), this paper demonstrates the influences of technological action frames, particularly the productivity master frame, on automated underwriting use practices. We also show, however, that the link between frames and use patterns is not a simple one. Several framings of automated underwriting emerged over time as a result of interactions among the components of technology ensembles and between technology ensembles and social actors. These interactions can confirm or disconfirm the frames, reinforcing or eroding them and shaping new frames. Today, multiple frames and use patterns exist simultaneously in the industry. As Kling and Iacono argued, these results cannot be understood solely in terms of economic forces. At the same time, they suggest the role of the technology ensemble in technology framing and use practices. These findings enhance our understanding of the dynamics of computerization movements. 1. INTRODUCTION Kling and Iacono (1988, 1995) inquired " why do organizations adopt new computing technologies? " and challenged us to move beyond simple explanations based on the economics of need. They directed our attention instead to public discourse about computing (see also Iacono & Kling, 2001) and to computerization movement (CM) advocates, such as professional associations, that provide arenas in which people develop technological action frames about what computing is good for and how it can fit into their organizations. They called for careful empirical studies of CMs that focus on the decline of CMs, value conflicts and counter-CMs, and alternative organizational practices of technology use (particularly those that differ from utopian visions).