Examining network factors: commitment, trust, coordination and harmony

Abstract

PURPOSE: – In recent decades, R&D networks have proliferated amongst members of universities, businesses, research organisations and government. Despite increases in the complexity and prominence of these networks, empirical studies investigating their performance are still sparse. The purpose of this paper is to fill this gap by investigating the impact of trust and commitment on network harmony and coordination. DESIGN / METHODOLOGY / APPROACH: – The study applies confirmatory factor analysis, using structural equation modelling, to ascertain the impact of trust and commitment on harmony and coordination within networks. It is based on responses of 124 participants from an Australian biotechnology and nanotechnology network. FINDINGS: – The study reveals that trust has significant impacts on both network coordination and harmony. PRACTICAL IMPLICATIONS: – The paper provides managerial implications for organisations involved in innovation networks which can be used to inform the design and coordination of inter-organisational innovation initiatives across sectors. ORIGINALITY / VALUE: – The paper is original as it provides a network perspective, as responses include a variety of perspectives from universities, businesses, research organisations and government. Consequently, it serves as a first step towards validating constructs from a network perspective that were previously validated only from organisational or dyadic perspectives.