Abstract
Based on the service outsourcing circumstances, we divided the cooperative governance mechanism of the service outsourcing enterprises to contractual governance mechanism and relational governance mechanism. We also analyze and reveal two governance mechanism how to influence innovation ability of service outsourcing supplier. To verify our hypothesis we obtain data of 177 samples through the questionnaire. Based on the data, we found that the contractual governance mechanism and the relational governance mechanism have different effect on innovation capability of service outsourcing enterprises. Our research also showed that relational governance mechanism has stronger impact on innovation capability than contractual governance mechanism. Knowledge acquisition and knowledge sharing in the relational governance mechanism and contractual governance mechanisms play an intermediary role between service outsourcing supplier's innovation ability.
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