Governance of new product design: The influence of national institutions

Isabel Maria Bodas Freitas, Ricardo Gonçalves and Rui Sousa

Journal of Business Research, 2023, vol. 165, issue C

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.

Keywords: Co-creation; Collaboration; Value-chain partners; Institutional environment (search for similar items in EconPapers)
JEL-codes: O32 O57 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:165:y:2023:i:c:s0148296323004010

DOI: 10.1016/j.jbusres.2023.114043

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