Tension between Performance and Conformance Devices in Sino-Foreign University Alliances for Innovation

The strategy literature suggests that concerted attention to technical performance improves innovation and socio-economic development. The institutional orientated literature, on the other hand, suggests that the attention to conformance for legitimacy leads to innovation and socio-economic development. Whether and how conformance contradicts or complements performance orientation in inter-institutional collaboration is the focus of this paper. More specifically, we explore the moderating effects of conformance on the link between performance and innovation. For empirical analysis, we use a unique set of data: the MOU (memorandum of understanding) signed for Sino-foreign alliances in the internationalisation of Chinese higher education. By means of coding of the press releases of 831 MOUs from the years 1994-2013, we develop concepts for innovation, performance and conformance followed by testing of three hypotheses. The results show, first, a positive correlation between performance and innovation. Second, the correlation between conformance and innovation is negative contrary to the predicted positive correlation. Third, the results show a negative moderation of conformance of the link between performance and innovation. The study contributes to the existing literature of the relationship between technical efficiency and legitimacy. This theme is studied in a novel context: internationalisation in the higher education sector. The results have policy implications for stakeholders of organisations in the education sector