Governance mechanisms

(used to deal with the paradoxical tensions of simultaneously co-creation and capturing value)

Organizational capabilities

(better able at managing the tension between co-creation and capture)

Appropriation strategies

(used by manager to deal with the tension between co-creation and appropriation)

- Contracts between the administrations involved.

- Co-production/benefit sharing: ability to manage changes in the scope of an IAR and resolve the tensions that these changes create.

- Trust; trust enhanced by spatial proximity: improves the ability of organizations to reap the returns from innovation and to lower the chance of misappropriation and loss of strategic knowledge.

- Appropriation mechanisms, such as labeling or certification procedures, patents and intellectual property rights: patent protection to address the simultaneous pursuit of value co-creation and appropriation in an IAR.

- Strong appropriability regimes: in circumstances of strong institutional conditions, strong appropriability regimes are found to enable virtuous cycles.

- Combining governance and appropriability regimes (e.g., appropriability regime and formal governance mechanism such as contract and co-creation).

- Particular organizational capabilities such as: Joint venture capabilities; experience with IARs; relational competences; communication quality in IAR; external capabilities.

- Partner-specific experience: greater knowledge of partners’ operating procedures and they share a larger amount of similar knowledge with their partners.

- Downstream capabilities and investment in the area of competency; staff capacity development; cross-government IT capabilities: Strong downstream capabilities are able to co-create value and at the same time protect against misappropriation, because these capabilities are specialized skills that are not easily transferable to other products or services. They are difficult to codify and therefore difficult to imitate by partners.

- Absorptive capacity in IOR success.

- Interactive revealing: use of different types of knowledge sharing for creating opportunities value (i.e., administration participants may reveal the problem area but protect the organization context).

- Gradual revealing without complete disclosure; selective revealing.

- Structuring the partnership as boundary organization and using mediated revealing.

- Dual value appropriation.

- Intended and unintended knowledge leaks for delayed value capture.

- Openness strategies: open and closed strategies for the first and last steps of the administration production process.

- Matching the partner’s profile with the scope of the IAR, the ownership mechanism, and the type of administrative reform research for organizational development (OD)

- Interdependence in contract negotiation: limiting the relationship to independent and non-specific assets (short-term) or developing relationship-specific and complementary assets (long term).

- Combination of protective strategy and absorptive capacity.