Governing for innovation in horizontal service cooperations

Purpose – The purpose of this study is to provide insights into the role of governance mechanisms in fostering innovativeness in horizontal service cooperations. Design/methodology/approach – Data were collected from 225 horizontal service cooperations in the logistics industry via an online survey. Structural equation modeling was used to analyze the empirical data. Findings – The choice of governance measures helps to improve the innovativeness of service cooperations. The use of formalization and balanced mutual influence, combined with cultural similarity provides the basis for the development of new or enhanced services within the cooperation. In contexts that build on equity‐based contracts, innovativeness is driven by the degree of mutual influence among partners. Research limitations/implications – Empirical data were collected in a single industry (logistics) and in a single country (Germany). A confirmation of the results in different service settings is therefore encouraged. Practical implications – This research emphasizes the importance of governance in facilitating innovation in service cooperations. By applying the right governance mechanisms in possible settings of co‐opetition, managers can foster coordination and the exchange of knowledge and diminish opportunistic behavior among parties. Originality/value – The research is extended by developing a model based on the knowledge of service innovation, cooperation performance and governance mechanisms and by empirically testing this model.