The dynamics of coordination in innovation networks

Despite abundant literature dedicated to networks and coordination, few empirical studies address the internal operations of inter-organizational networks. This research therefore aims to characterise coordination mechanisms of various forms and analyse their evolution through an empirical analysis of six innovation networks. Three main dimensions determine the type of coordination adopted by a hub firm: its dependency, prior business relations, and type of conflict. The study also reveals a negative effect of a singular reliance on trust. Indirect guarantees need to combine with direct guarantees to facilitate hub firm dependence. Moreover, the coordination modes and the use of hard conflict resolution mechanisms vary with the type of conflict (i.e., project or behavioural). These findings have key implications for research and practice.