Orchestrating Alliance Networks: the Role of Innovation Appropriability, Knowledge Sharing and Network Capability

Alliance networks can often be viewed as loosely coupled systems of autonomous firms. We propose that firms orchestrate network activities to ensure the creation and extraction of value. Orchestration comprises network capability, knowledge sharing, and innovation appropriability. Firstly, we applies the network theory to investigate whether the development of network capability and knowledge sharing enhance the performance of alliance network. Secondly, this research addresses a dimension that describes the interdependence of network members, namely, innovation appropriabiliy. This study provides a more integrated understanding of managing innovation appropriability by examining how relational processes (interparty trust) and the design and application of structural elements (joint governance and procedural justice) affect knowledge sharing and the firm’s network capabilities. The focal concept framework is developed from network theory, the knowledge-based view and alliance governance literature.