Governance of open innovation networks with national vs international scope

Abstract

PurposeThe realisation of joint innovation outcomes in open innovation networks is closely related to an efficient utilisation of governance mechanisms, which coordinate joint processes (e.g. knowledge sharing) and eliminate undesired behaviours (e.g. opportunism). Hence, the purpose of this paper is to analyse the complex effects of multiple governance approaches on outcomes of open innovation networks with a national and an international scope.Design/methodology/approachThe study draws on a large-scale survey-based study of 100 mechanical engineering firms involved in open innovation networks. Hypotheses are tested by means of PLS structural equation modelling.FindingsThe evidence shows that the three governance mechanisms: transactional governance, relational governance and institutionalised governance significantly foster innovation outcomes of open innovation networks. In national open innovation networks, only relational governance exerts positive effects, internationally transactional and institutionalised governance is necessary.Research limitations/implicationsThe study contributes to research in multiple ways. First, it shows that governance of open innovation networks is crucial for their innovation performance, thereby providing some explanations for the performance differences between certain networks. Second, the results indicate that the effects of governance mechanisms depend on the scope of the network. By showing that the effect of governance mechanisms varies under different contextual conditions the study also contributes to the ongoing debate on combined effects of governance mechanisms.Originality/valueThe paper fills important gaps in the existing research on the link between governance and performance in open innovation networks and delineates interesting areas for further research.