Product innovation through coopetition in alliances: Singular or plural governance? |
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| Institution: | 1. Bayreuth University, Faculty of Law, Business and Economics, Chair of Strategic Management and Organization, Universitätsstrasse 30, 95444 Bayreuth, Germany;2. University of Marburg, School of Business and Economics, Research group of Management and Innovative Value Creation Concepts, Universitätsstrasse 25a, 35037 Marburg, Germany;2. Montpellier Business School & i3-CRG, École polytechnique, CNRS, Université Paris-Saclay, 2300 Avenue des Moulins, 34185 Montpellier, France;1. Umeå School of Business and Economic, Umeå University, S-901 87 Umeå, Sweden;2. Department of Management and Organization, Hanken School of Economics, Vaasa, Finland;1. Umeå School of Business and Economics, Umeå University, Sweden;2. Department of Management and Organization, Hanken School of Economics, Finland;3. Erling-Persson Center for Entrepreneurship, Hanken School of Economics, Finland |
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| Abstract: | This study researches how firms can improve their product innovation in coopetition alliances through alliance governance. Our survey-based study of 372 vertical alliances in the medical device industry contributes to a clarification of prior studies' contrasting findings on product innovation when coopetition is present in alliances. Our results show that the singular use of relational governance improves product innovativeness in vertical alliances that experience growing levels of coopetition. In contrast, the singular use of transactional governance reduces product innovativeness with growing coopetition. When firms apply both relational and transactional governance as plural governance, vertical coopetition alliances get access to new ways to improve their product innovativeness. |
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