How contracts and culture mediate joint transactions of innovation partnerships

Publisher:
World Scientific Publishing
Publication Type:
Journal Article
Citation:
International Journal of Innovation Management, 2016, 20 (1), pp. 1 - 33 (33)
Issue Date:
2016
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Although the literature suggests that matters of contracting and governance in strategic innovation partnerships are interrelated and that governance of partnerships generally occurs with contractual heterogeneity, our understanding about the specific relationships between contracting and the partnership culture that facilitates joint transactions is rather vague. In this study, we clarify how the complexity of contractual agreements between partners in conjunction with the alignment of their innovation objectives and the ambiguity inherent in their mutual contributions to the partnership can be used to predict the culture of the partnership. We find that innovation partnerships result to be one of four types: bureaucratic, market, clan, or adhocracy. Our result emphasises the central role of con- tractual complexity as a suitable and relevant concept to capture the nature of inter- organisational innovation partnerships.
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