Intermediary Relational Governance, organizational engagement and Service Innovation Network Performance

Received:October 16, 2017  Revised:October 16, 2017

Key Words:  Intermediaries relational governance; Organizational engagement; Network performance; Service innovation network

Author NameAffiliation
OU BAI Zhejiang A&F University 
JIANG WEI* Zhejiang University 
XIAOHUA YANG University of San Francisco 
ROGER CHEN University of San Francisco 

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Abstract:
      Governance is more challenging in service innovation networks due to the nature of intangibility and co-development of service innovation. Although intermediaries play crucial role in service innovation networks, the mechanisms enacted by intermediaries to govern innovation networks are relatively unexplored. In this study, we introduce a new construct, intermediaries relational governance, and clarify its importance for superior innovation network performance. We identify three dimensions of intermediaries relational governance (i.e. co-reputation, procedure routine and technological norm) and propose a structural model linking intermediaries relational governance to innovation network performance. Further, we examine the mediating effect of organizational engagement on the governance-performance relationship. We argue that organizational engagement is an underlining determinant of success in service innovation networks. Building on a large sample survey data from Yangtze River Delta region of China and structural equation model, our findings reveal that intermediaries relational governance positively impacts the organizational engagement of network members in the service innovation networks. The results also suggest that the more intensively and persistently engagement are applied by network members the higher the innovation performance and operational performance of innovation networks. This article adds insights to the network governance literature and to the nascent literature on how governance mechanisms enacted by innovation intermediaries shape higher network performance.

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