The Dynamics of Coordination in Innovation Networks

Abstract

Despite abundant literature dedicated to networks and coordination, few empirical studies address the internal operations of inter-organizational networks. This research therefore aims to characterize coordination mechanisms of various forms and analyse their evolution through an empirical analysis of six innovation networks. A comparative case study approach examines how three main dimensions (dependency, prior business relations, and type of conflict) influence the type of coordination adopted by a hub firm, as well as its evolution. Each case serves as a distinct experiment that stands on its own as an analytic unit. The six cases thus are discrete experiments that serve as replications and contrasts. The study reveals a negative effect of a singular reliance on trust. Indirect guarantees need to combine with direct guarantees to facilitate hub firm dependence. Moreover, the coordination modes and the use of hard conflict resolution mechanisms vary with the type of conflict (i.e., project or behavioural). These findings have key implications for research and practice.

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