The impact of innovation evolution and interaction control on interfirm network performance

Abstract

ABSTRACT Most existing studies have focused on the innovation capabilities of organisations within interfirm networks while neglecting to consider the impact of the choice of innovation evolution mechanisms and the degree of internal interaction control on this system. This study addresses this research gap based on the NK model framework to investigate how different innovation evolution mechanisms and the degree of internal interaction control affect interfirm network performance. In addition, we investigate the moderating role played by the frequency of technological change between the innovation evolution mechanism and the degree of internal interaction control of the interfirm network. The results show that to achieve higher performance levels, the interfirm network should be assigned a self-organisational model in the early stage of innovation evolution, while in the later stage of innovation evolution, it should undergo organisational changes and be assigned a federated alliance model to establish an alliance coordination committee with a certain degree of interactive control over the supporting firms. When the frequency of technological change is low, the alliance coordinating committee takes relatively strong control over the supporting firms as the best, and when the frequency is high, the degree of control over the supporting firms should be appropriately weakened.