Market Orientation, Alliance Governance, and Innovation

Yu Li, Yao Chen, Yuan Li, Christopher Holland

OAI: oai:igi-global.com:215020 • DOI: 10.4018/JGIM.2019010101

Relying on resource dependence theory and transaction cost economics, this article discusses the important role of alliance governance as a mediating mechanism in the relationship between market orientation and innovation, and compares the differences between the influences of different dimensions. The article aims to reveal the influence mechanism of different types of alliance governance on the relationship between market orientation and innovation. Based on a sample of 122 Chinese manufacturing enterprises, the article finds that: (1) contractual governance will increase when customer orientation and competitor orientation become higher, and contractual governance will affect radical innovation in a U-shaped way; (2) trust governance will increase when inter-functional coordination become higher, and trust governance has a positive impact on both radical innovation and incremental innovation (II).

Global Information Technology Computer Science and Information Technology IT Research and Theory