The Role of Relational Governance in Innovation Performance in Clusters

This paper aims to examine the effects of two kind of inter-firm relationship characteristics to the firm´s innovation performance. In addition, a ´climatic´ characteristic, namely industrial symmetry was also involved in the framework to explore the contingency role of the two relationship characteristics on relational governance. Using survey data from a sample of 211 firms from mainland China, we found that both kinds of relationship features have a positive impact on innovation performance because they facilitate relational governance at the firm level. We also find that relational governance have a inverted U shape effect on the outcome variable. Further industrial symmetry positively moderates the relationship between inter-firm trust and innovation performance.