Third-party relational governance and collaborative innovation performance: The role of IPR protection

Abstract

The purpose of this study is to explore the impact of third-party relational governance on the performance of collaborative innovation in China. By integrating the relational view and innovation appropriation perspectives, this study analyses the effects of three mechanisms of third-party relational governance—co-reputation, interorganizational routines, and technological norms—on collaborative innovation performance. Additionally, this study investigates the moderating effects of the protection of intellectual Property Rights (IPR) on the relationship between third-party relational governance and collaborative innovation performance. Survey data of high-technology firms in China are used to empirically test the hypotheses. The results show that third-party relational governance has a positive effect on collaborative innovation performance and that IPR protection has different moderating effects. This study contributes to the relational governance literature by adding the perspective of third parties and analyzing three mechanisms of third-party relational governance in a single model. This study also contributes to the innovation appropriation literature by examining the role of IPR protection in governing collaborative innovation in China. Finally, this study offers suggestions on how Chinese firms should govern their collaborative innovation to remedy the limitations of a weak IPR legal institutional framework. Keywords: Third-party relational governance, Collaborative innovation, IPR protection, Chinese high-technology industry