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Choosing the Right Partner or Controlling the Partner Right? Partner Selection, Control and Radical Innovation

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DOI: 10.23977/ferm.2019.21002 | Downloads: 14 | Views: 557

Author(s)

Wenxia Yang 1

Affiliation(s)

1 School of Management, Shanghai University, Shanghai 200444, China

Corresponding Author

Wenxia Yang

ABSTRACT

Partner selection and partner control are two important mechanisms to solve the potential control problems in inter-organizational innovation cooperation. However, few existing literatures comprehensively evaluate the impact of the two control mechanisms on enterprise innovation. Based on the theory of management control, the research constructs a joint effect model of partner selection and partner control that influences enterprise radical innovation, and examines the impact of partner selection and partner control on enterprise radical innovation and its internal mechanisms. The result shows that: (1) partner selection has no direct impact on enterprise radical innovation, but it has an indirect impact on enterprise radical innovation through partner control; (2) partner control can directly and indirectly affect enterprise radical innovation through partial mediation of strategic information sharing, and the direct effect of outcome control on enterprise radical innovation is more significant, the indirect effect of behavior control on enterprise radical innovation is more significant through inter-organizational strategic information sharing; (3) partner selection has an indirect impact on enterprise radical innovation through partner control and strategic information sharing, partner control and strategic information sharing play a role as a chain intermediary in the relationship between partner selection and enterprise radical innovation. The conclusion reveals that it is important to choose the right partner in the innovation cooperation, but it is more important to control the partner right. Only by exerting reasonable control over the partner can partner selection give full play to its value.

KEYWORDS

Partner selection, partner control, strategic information sharing, radical innovation

CITE THIS PAPER

Wenxia Yang, Choosing the Right Partner or Controlling the Partner Right? Partner Selection, Control and Radical Innovation. Financial Engineering and Risk Management (2019) 2: 7-23. DOI: http://dx.doi.org/10.23977/ferm.2019.21002.

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