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Governance of new product design: The influence of national institutions

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  • Bodas Freitas, Isabel Maria
  • Gonçalves, Ricardo
  • Sousa, Rui

Abstract

This paper builds on institutional economics theory to analyze whether and how the institutional environment shapes the micro-level governance decisions related to innovation activities. Specifically, we suggest that the extent of co-creation with value-chain partners in new product design – a relational form of governance – is influenced by the institutional setting of the focal firm. Empirically, we rely on data on 636 manufacturers in 21 countries. Results from a hierarchical probit regression show that co-creation is more likely for firms that operate in countries with weak rule-of-law and/or atrophic technological infrastructures. We discuss the implications for theory and practice.

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  • Bodas Freitas, Isabel Maria & Gonçalves, Ricardo & Sousa, Rui, 2023. "Governance of new product design: The influence of national institutions," Journal of Business Research, Elsevier, vol. 165(C).
    • Handle: RePEc:eee:jbrese:v:165:y:2023:i:c:s0148296323004010
    DOI: 10.1016/j.jbusres.2023.114043
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    More about this item

    Keywords

    Co-creation; Collaboration; Value-chain partners; Institutional environment;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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