Suppressing risk propagation in R&D networks: the role of government intervention

Purpose: This paper aims to explore what factors influence the possibility of internal and external risk propagation in R&D networks and investigate how government intervention moderates the associations between the influencing factors and risk propagation. Design/methodology/approach: The authors divided government intervention into directive and facilitative intervention and adopted an empirical research approach in this study. They collected 228 questionnaires from managers and R&D personnel participating in R&D projects in Shanghai and Jiangsu province through e-mail and in person. The data were used to carry out multiple regression analysis to test hypotheses. Findings: The results show that the probability and consequence of risks positively affect the possibility of internal and external risk propagation; risk perception and transformation ability negatively influence the possibility of internal and external risk propagation; both directive and facilitative intervention weaken the relationship between the probability of risks and internal risk propagation when they are high than low the association between transformation ability and internal risk propagation is weaker when directive intervention is high than low, whereas facilitative intervention presents the insignificant moderation effect on the relationships between risk perception ability and internal and external risk propagation. Originality/value: This study provides a distinctive theoretical perspective for risk conduction theory, government intervention theory and risk management. It also offered managers and the government a clear understanding of how to reduce or avoid risk propagation by leveraging directive and facilitative government intervention.