Governance of new product design: the influence of national institutions

Isabel Maria Bodas Freitas, Ricardo Gonçalves*, Rui Sousa

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review


This paper builds on institutional economics theory to analyze whether and how the institutional environment shapes the micro-level governance decisions related to innovation activities. Specifically, we suggest that the extent of co-creation with value-chain partners in new product design – a relational form of governance – is influenced by the institutional setting of the focal firm. Empirically, we rely on data on 636 manufacturers in 21 countries. Results from a hierarchical probit regression show that co-creation is more likely for firms that operate in countries with weak rule-of-law and/or atrophic technological infrastructures. We discuss the implications for theory and practice.
Original languageEnglish
Article number114043
Number of pages16
JournalJournal of Business Research
Publication statusPublished - Oct 2023


  • Co-creation
  • Collaboration
  • Institutional environment
  • Value-chain partners


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