The dynamics of relational and contractual governance mechanisms in knowledge sharing of collaborative R&D projects

Abstract

AbstractThe purpose of this paper is to explore the dynamics of relational and contractual governance mechanisms in vertical buyer–supplier R&D projects requiring both knowledge sharing and protection. Prior literature has recognised the mutual impact of relational and contractual governance on knowledge sharing, but treats the linkages in a rather static way. This research introduces a more explicit process perspective, and combines four concepts: trust, relational norms, contracts and intellectual property rights (IPRs). The paper concentrates on the roles and interplay of both types of mechanisms in the different project phases. We collected qualitative interview data from four buyer–supplier R&D collaboration projects, each pair serving as a unit of analysis. Our findings indicate that both contractual and relational governance mechanisms play a role in buyer–supplier R&D collaboration but their relative importance varies according to the collaboration phase. Whereas in the exploration phase trust may even substitute contractual governance, both mechanisms support each other in the development phase. Contractual mechanisms are emphasised in the finalisation phase, although relational mechanisms also play a role. The lesson for management understanding is that both types of mechanisms should be considered simultaneously throughout the collaboration process. Copyright © 2010 John Wiley & Sons, Ltd.