AIMS

Servajean-hilst Romaric
An empirical study of the dyadic governance of vertical innovation in France – taxonomy and link with the nature of innovation projects

This paper presents the results of a study based on survey data from 160 managers from French supplier firms about the management of innovation cooperation with one of their client, with a dyadic view. The findings out of a hierarchical ascendant classification and principal component analysis indicates a taxonomy made of four governance types: (1) the “free” type with light contractual arrangement and few coordination mechanisms; (2) the “project-oriented” type implicating largely R&D entities, with contractual arrangement dedicated to the sole innovation project; (3) the “elaborated-partnership” type with complex contractual arrangement comprising mutual commitment and implication of all operational entities; and (4) the “exclusive-partnership” type with contractual arrangement including exclusive commitment, implication of operational entities and joint management of the relationship and of the innovation project. χ-2 statistical tests revealed the existence of a link between governance type and the maturity of the innovation project when both firms are involved, but not with the type and the extent of innovation. This study contributes to the literature on Early Supplier Involvement and on Open Innovation showing how supplier and client jointly organize their relationship regarding the timing of their common implication. Its main managerial implication is to underline the connection between the governance of joint innovation project and the governance of client-supplier relationship, both at inter-firm and intra-firm levels. For managers it implicates to take into consideration these numerous sides of the cooperation when integrating a supplier in an innovation project, or when being integrated in a client’s innovation project.