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Governance Modes For Systemic Innovation. Service Development In Mobile Telecommunications

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  • van den Ende, J.C.M.
  • Jaspers, F.P.H.

Abstract

This paper focuses on governance modes for systemic innovation projects. The central question is: to what extent does the newness of a system and its components affect the most appropriate governance mode for component development projects? Component development projects can be performed by either the system developer, the component developer or by some combination of these parties in a collaborative governance mode. This paper presents a model to determine the most appropriate governance mode for component development depending on the newness of the system and the component. We include in our model considerations of both appropriation and integration of knowledge. We tested the model on thirty new service development projects for mobile telecommunications systems. The study shows support for the claim that misfit between the modeled and the actual governance modes negatively affects the performance of component innovation projects.

Suggested Citation

  • van den Ende, J.C.M. & Jaspers, F.P.H., 2004. "Governance Modes For Systemic Innovation. Service Development In Mobile Telecommunications," ERIM Report Series Research in Management ERS-2004-067-ORG, 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.
    • Handle: RePEc:ems:eureri:1539
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    References listed on IDEAS

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    1. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    2. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    3. van den Ende, Jan, 2003. "Modes of governance of new service development for mobile networks: A life cycle perspective," Research Policy, Elsevier, vol. 32(8), pages 1501-1518, September.
    4. Donald Gerwin & J. Stephen Ferris, 2004. "Organizing New Product Development Projects in Strategic Alliances," Organization Science, INFORMS, vol. 15(1), pages 22-37, February.
    5. Funk, Jeffrey L. & Methe, David T., 2001. "Market- and committee-based mechanisms in the creation and diffusion of global industry standards: the case of mobile communication," Research Policy, Elsevier, vol. 30(4), pages 589-610, April.
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    Cited by:

    1. Lema, Rasmus, 2010. "Adoption of Open Business Models in the West and Innovation in India's Software Industry," MPRA Paper 49589, University Library of Munich, Germany.

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    More about this item

    Keywords

    component innovation; governance modes; performance of innovation projects; system innovation;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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