Comparing value-adding collaboration in new service development versus new product development
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Firm to firm collaboration for innovation has received considerable attention by scholars in innovation and strategic research domains. However, little is known about how the value-adding nature of firm collaboration differs for new services versus new product developments. We utilize a survey research design on 194 innovation alliances in order to investigate the multi-dimensional nature of collaboration between partnering firms. We categorize firm collaboration into two sub-sets of collaborative dimensions (1) processes dimension (includes mutual communication, joint engagement, sharing responsibilities), and (2) ownership dimension (includes relationship commitment and mutual trust). We advance six hypotheses to assess the nature and impact of these collaborative dimensions on new service versus new product developments. Results reveal that the intensity of mutual communication and joint engagement among collaborating firms is much higher when a service is developed. However, relationship commitment is comparably larger in product innovations. Multiple regression analyses further show that there is a stronger positive relationship between joint engagement among firms involved in product development and success than when a service is developed. Conversely, mutual trust has a stronger, positive relationship with performance when a new service is developed than when a new product is developed. We discuss implications of the results, give overall contributions, and provide suggestions for future research.
The academy of management annual meeting proceedings
Copyright 2008 Academy of Management (AOM). The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the conference's website for access to the definitive, published version.