Governing knowledge mobility in service innovation network for innovation performance: The interplay of relational and contractual governance modes

Knowledge mobility is more challenging in service innovation networks due to the nature of intangibility and co-development of service innovation. A central question is how to govern knowledge mobility for service innovation performance in such innovation networks. Given the inconsistent findings, more comprehensive research is needed to uncover the effects of contract-based and relation-based governance modes on knowledge mobility in service innovation network. Drawing from social exchange theory and network governance literature, this study examines how firms can employ relation-based and contract-based governance modes to affect interfirm knowledge mobility and collaborative innovation performance in service innovation networks. A survey of 308 knowledge-intensive service firms reveals a mediating effect of knowledge mobility on the relationship between relation-based governance mode and service collaborative innovation performance. Second, relation-based and contract-based governance modes have a negative joint effect on knowledge mobilizing in service innovation network. The findings bear important theoretical and managerial implications for innovation network governance in knowledge intensive services.