DOES CULTURE EAT STRATEGY? THE EMERGENCE OF COOPERATION CAPABILITY IN YOUNG FIRMS

Abstract

Young firms benefit from cooperations in their development and cooperation capability is a prerequisite for a successful cooperation with partners. Despite its importance, research has neglected how this dynamic capability emerges in young firms. This study examines how innovation championing behaviour affects the cooperation capability. We introduce innovation strategy and innovation culture as two critical mediators in this relationship. Data from 283 young firms indicate that innovation culture is an essential mediator in the significant positive relationship between innovation championing behaviour and young firms’ cooperation capability. Surprisingly, innovation strategy does not directly affect the development of cooperation capability but fosters the development of innovation culture. The findings carry theoretical and practical implications for the emergence of cooperation capability in young firms by uncovering its origins and the intermediate transition process.