IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v65y2012i3p347-354.html
   My bibliography  Save this article

Governance mechanisms for mobile service innovation in value networks

Author

Listed:
  • de Reuver, Mark
  • Bouwman, Harry

Abstract

Service innovation often requires multiple organizations to work together in complex, dynamic networks. Existing literature shows that mechanisms like trust, power and contracts govern activities in organizational networks. Scholars rarely study how such a mix of mechanisms evolves over time, especially not in relation to different stages of service innovation. This paper connects a phasing model on service innovation to concepts of inter-organizational governance in value networks, by examining what governance mechanisms are in use during service development, implementation and commercialization. This study analyzes an international survey among operators, content providers and application developers in the Mobile Internet services domain, which is noted for its complex inter-organizational networks. The findings suggest that power-based governance is in use in the early stages of developing service concepts and technologies, while trust-based governance is in use during implementation, roll-out and commercialization. Contract-based governance is most common during implementation and roll-out.

Suggested Citation

  • de Reuver, Mark & Bouwman, Harry, 2012. "Governance mechanisms for mobile service innovation in value networks," Journal of Business Research, Elsevier, vol. 65(3), pages 347-354.
  • Handle: RePEc:eee:jbrese:v:65:y:2012:i:3:p:347-354
    DOI: 10.1016/j.jbusres.2011.04.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296311001330
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2011.04.016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tim Rowley & Dean Behrens & David Krackhardt, 2000. "Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 369-386, March.
    2. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    3. Gallouj, Faiz & Weinstein, Olivier, 1997. "Innovation in services," Research Policy, Elsevier, vol. 26(4-5), pages 537-556, December.
    4. Cai, Shaohan & Yang, Zhilin & Hu, Zuohao, 2009. "Exploring the governance mechanisms of quasi-integration in buyer-supplier relationships," Journal of Business Research, Elsevier, vol. 62(6), pages 660-666, June.
    5. Håvard Ness, 2009. "Governance, Negotiations, and Alliance Dynamics: Explaining the Evolution of Relational Practice," Journal of Management Studies, Wiley Blackwell, vol. 46(3), pages 451-480, May.
    6. David Evans & Richard Schmalensee, 2007. "The Industrial Organization of Markets with Two-Sided Platforms," CPI Journal, Competition Policy International, vol. 3.
    7. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    8. Lee, Yikuan & Cavusgil, S. Tamer, 2006. "Enhancing alliance performance: The effects of contractual-based versus relational-based governance," Journal of Business Research, Elsevier, vol. 59(8), pages 896-905, August.
    9. Akbar Zaheer & Bill McEvily & Vincenzo Perrone, 1998. "Does Trust Matter? Exploring the Effects of Interorganizational and Interpersonal Trust on Performance," Organization Science, INFORMS, vol. 9(2), pages 141-159, April.
    10. Africa Ariño & José de la Torre, 1998. "Learning from Failure: Towards an Evolutionary Model of Collaborative Ventures," Organization Science, INFORMS, vol. 9(3), pages 306-325, June.
    11. Halinen, Aino & Tornroos, Jan-Ake, 2005. "Using case methods in the study of contemporary business networks," Journal of Business Research, Elsevier, vol. 58(9), pages 1285-1297, September.
    12. Bill McEvily & Vincenzo Perrone & Akbar Zaheer, 2003. "Trust as an Organizing Principle," Organization Science, INFORMS, vol. 14(1), pages 91-103, February.
    13. John Hagedoorn, 1993. "Understanding the rationale of strategic technology partnering: Interorganizational modes of cooperation and sectoral differences," Strategic Management Journal, Wiley Blackwell, vol. 14(5), pages 371-385, July.
    14. Ness, Havard & Haugland, Sven A., 2005. "The evolution of governance mechanisms and negotiation strategies in fixed-duration interfirm relationships," Journal of Business Research, Elsevier, vol. 58(9), pages 1226-1239, September.
    15. von Tunzelmann, Nick, 2003. "Historical coevolution of governance and technology in the industrial revolutions," Structural Change and Economic Dynamics, Elsevier, vol. 14(4), pages 365-384, December.
    16. Stephen J. Carson & Anoop Madhok & Rohit Varman & George John, 2003. "Information Processing Moderators of the Effectiveness of Trust-Based Governance in Interfirm R&D Collaboration," Organization Science, INFORMS, vol. 14(1), pages 45-56, February.
    17. Vlaar, P.W.L. & van den Bosch, F.A.J. & Volberda, H.W., 2006. "On the Evolution of Trust, Distrust, and Formal Coordination and Control in Interorganizational Relationships: Towards an Integrative Framework," ERIM Report Series Research in Management ERS-2006-035-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    18. Moller, Kristian & Rajala, Arto & Svahn, Senja, 2005. "Strategic business nets--their type and management," Journal of Business Research, Elsevier, vol. 58(9), pages 1274-1284, September.
    19. Jon Sundbo, 1997. "Management of Innovation in Services," The Service Industries Journal, Taylor & Francis Journals, vol. 17(3), pages 432-455, July.
    20. Jeroen de Jong & Patrick Vermeulen, 2003. "Organizing Successful New Service Development: A Literature Review," Scales Research Reports N200307, EIM Business and Policy Research.
    21. Gianni Lorenzoni & Andrea Lipparini, 1999. "The leveraging of interfirm relationships as a distinctive organizational capability: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 20(4), pages 317-338, April.
    22. Mark de Reuver & Harry Bouwman & Guadalupe Flores Hernández, 2009. "Exploring Technology Design Issues for Mobile Web Services," Contributions to Economics, in: Peter Curwen & Justus Haucap & Brigitte Preissl (ed.), Telecommunication Markets, pages 309-324, Springer.
    23. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    24. Jean Gadrey & Faïz Gallouj & Olivier Weinstein, 1995. "New modes of innovation: how services benefit industry," Post-Print halshs-01114102, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wessel, Michael & Thies, Ferdinand & Benlian, Alexander, 2015. "The Effects of Relinquishing Control in Platform Ecosystems: Implications from a Policy Change on Kickstarter," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 75205, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Benoît Desmarchelier & Faridah Djellal & Faïz Gallouj, 2020. "Towards a servitization of innovation networks: a mapping," Public Management Review, Taylor & Francis Journals, vol. 22(9), pages 1368-1397, July.
    3. Benoît Desmarchelier & Faridah Djellal & Faïz Gallouj, 2019. "Towards a servitization of innovation networks: from traditional innovation networks to public service innovation networks for social innovation," Post-Print halshs-03177975, HAL.
    4. Marcel Papert & Alexander Pflaum, 2017. "Development of an Ecosystem Model for the Realization of Internet of Things (IoT) Services in Supply Chain Management," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(2), pages 175-189, May.
    5. Ehrenhard, Michel & Kijl, Bjorn & Nieuwenhuis, Lambert, 2014. "Market adoption barriers of multi-stakeholder technology: Smart homes for the aging population," Technological Forecasting and Social Change, Elsevier, vol. 89(C), pages 306-315.
    6. Mosterd, Lars & Sobota, Vladimir C.M. & van de Kaa, Geerten & Ding, Aaron Yi & de Reuver, Mark, 2021. "Context dependent trade-offs around platform-to-platform openness: The case of the Internet of Things," Technovation, Elsevier, vol. 108(C).
    7. Croitor, Evgheni & Werner, Dominick & Benlian, Alexander, 2021. "The Effects of Control Mechanisms on Complementors’ Behavioral Intentions: An Empirical Study of Reward-Based Crowdfunding Platforms," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 124635, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    8. Benoît Desmarchelier & Faridah Djellal & Faïz Gallouj, 2018. "Public Service Innovation Networks (PSINs): Collaborating for Innovation and Value Creation," Working Papers halshs-01934275, HAL.
    9. Best, Bernadette & Miller, Kristel & McAdam, Rodney & Maalaoui, Adnane, 2022. "Business model innovation within SPOs: Exploring the antecedents and mechanisms facilitating multi-level value co-creation within a value-network," Journal of Business Research, Elsevier, vol. 141(C), pages 475-494.
    10. Hao, Bin & Feng, Yanan & Ye, Jiangfeng, 2017. "Building interfirm leadership: A relational identity perspective," European Management Journal, Elsevier, vol. 35(5), pages 651-662.
    11. Boriana Rukanova & Mark Reuver & Stefan Henningsson & Fatemeh Nikayin & Yao-Hua Tan, 2020. "Emergence of collective digital innovations through the process of control point driven network reconfiguration and reframing: the case of mobile payment," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 107-129, March.
    12. Brea, Edgar, 2023. "A framework for mapping actor roles and their innovation potential in digital ecosystems," Technovation, Elsevier, vol. 125(C).
    13. Rodríguez-López, Nuria & Diz-Comesaña, María Eva, 2016. "Efeito mediador do controle formal e informal na forma de governo," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 56(6), November.
    14. Miguel Jaimes-Valdez & Carlos A. Jacobo-Hernandez & Sergio Ochoa-Jimenez, 2017. "Corporate Governance: International Context and Trends from 2005 to 2015," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(3), pages 158-158, February.
    15. Maria Chiara Di Guardo & Francesca Cabiddu, 2015. "E-service innovation: combining directed and practice-based approaches," The Service Industries Journal, Taylor & Francis Journals, vol. 35(1-2), pages 81-95, January.
    16. Tóth, Zsófia & Nemkova, Ekaterina & Hizsák, Gábor & Naudé, Peter, 2022. "Social capital creation on professional sharing economy platforms: The problems of rating dependency and the non-transferability of social capital," Journal of Business Research, Elsevier, vol. 144(C), pages 450-460.
    17. Clauss, Thomas & Ritala, Paavo, 2023. "Network governance institutionalization: Creating mutual value by harnessing and avoiding conflicts in interorganizational networks," Journal of Business Research, Elsevier, vol. 163(C).
    18. van der Valk, Wendy & Lumineau, Fabrice & Wang, Wenqian, 2019. "Research on contracting in supply chain management and related disciplines: A synthesis of scholarly recommendations and a discussion of future opportunities," Other publications TiSEM 55901a88-7fc5-4808-a47a-e, Tilburg University, School of Economics and Management.
    19. Kvedarienė Audronė, 2019. "Strategic technology management within global value systems," Open Economics, De Gruyter, vol. 2(1), pages 43-52, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexander T Mohr & Jonas Puck, 2013. "Revisiting the Trust-performance Link in Strategic Alliances," Management International Review, Springer, vol. 53(2), pages 269-289, April.
    2. Rekha Krishnan & Inge Geyskens & Jan-Benedict E. M. Steenkamp, 2016. "The effectiveness of contractual and trust-based governance in strategic alliances under behavioral and environmental uncertainty," Strategic Management Journal, Wiley Blackwell, vol. 37(12), pages 2521-2542, December.
    3. Pinar Ozcan, 2018. "Growing with the market: How changing conditions during market growth affect formation and evolution of interfirm ties," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 295-328, February.
    4. Hans Berends & Elco van Burg & Erik M. van Raaij, 2011. "Contacts and Contracts: Cross-Level Network Dynamics in the Development of an Aircraft Material," Organization Science, INFORMS, vol. 22(4), pages 940-960, August.
    5. Li, Li, 2005. "The effects of trust and shared vision on inward knowledge transfer in subsidiaries' intra- and inter-organizational relationships," International Business Review, Elsevier, vol. 14(1), pages 77-95, February.
    6. Oliver Schilke & Karen S. Cook, 2015. "Sources of alliance partner trustworthiness: Integrating calculative and relational perspectives," Strategic Management Journal, Wiley Blackwell, vol. 36(2), pages 276-297, February.
    7. Fang, F., 2019. "When performance shortfall arises, contract or trust? A multi-method study of the impact of contractual and relational governances on performance in public – private partnerships," Other publications TiSEM 473840ee-6945-4a93-9326-5, Tilburg University, School of Economics and Management.
    8. Gagalyuk, Taras, 2012. "Goal achievement in supply chain networks: A study of the Ukrainian agri-food business," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 64, number 64.
    9. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    10. Chang, Yuan-Chieh & Chen, Min-Nan, 2016. "Service regime and innovation clusters: An empirical study from service firms in Taiwan," Research Policy, Elsevier, vol. 45(9), pages 1845-1857.
    11. K. J. Wang & J. Widagdo & Y. S. Lin & H. L. Yang & S. L. Hsiao, 2016. "A service innovation framework for start-up firms by integrating service experience engineering approach and capability maturity model," Service Business, Springer;Pan-Pacific Business Association, vol. 10(4), pages 867-916, December.
    12. Yadong Luo, 2007. "Private control and collective control in international joint ventures," Management International Review, Springer, vol. 47(4), pages 531-566, October.
    13. Li, Haiyan, 2020. "Role of overseas ethnic and non-ethnic ties and firm activity in the home country in the internationalization of returnee entrepreneurial firms," Journal of International Management, Elsevier, vol. 26(1).
    14. Kindström, Daniel & Kowalkowski, Christian & Sandberg, Erik, 2013. "Enabling service innovation: A dynamic capabilities approach," Journal of Business Research, Elsevier, vol. 66(8), pages 1063-1073.
    15. Kim, Yusoon & Choi, Thomas Y., 2021. "Supplier relationship strategies and outcome dualities: An empirical study of embeddedness perspective," International Journal of Production Economics, Elsevier, vol. 232(C).
    16. de Vries, Erik J., 2006. "Innovation in services in networks of organizations and in the distribution of services," Research Policy, Elsevier, vol. 35(7), pages 1037-1051, September.
    17. Matthew J. Robson & Constantine S. Katsikeas & Daniel C. Bello, 2008. "Drivers and Performance Outcomes of Trust in International Strategic Alliances: The Role of Organizational Complexity," Organization Science, INFORMS, vol. 19(4), pages 647-665, August.
    18. Akbar Zaheer & Exequiel Hernandez & Sanjay Banerjee, 2010. "Prior Alliances with Targets and Acquisition Performance in Knowledge-Intensive Industries," Organization Science, INFORMS, vol. 21(5), pages 1072-1091, October.
    19. Gonzalo Maldonado-Guzmán & José Trinidad Marín-Aguilar & Sandra Yesenia Pinzón-Castro, 2017. "Service Innovation in Mexican Small Business," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 7(4), pages 1-1.
    20. Pasquale Persico & Maria Patrizia Vittoria, 2015. "Innovazione nei servizi ed innovazione nel manifatturiero: verso una sintesi integrata per definire il ruolo delle reti in R&D," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2015(1), pages 203-215.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:65:y:2012:i:3:p:347-354. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.