Building a Decision Tree to opt for the Structural Mode of Service Innovation Alliances

The distributed ‘open’ model of innovation development has been increasingly applied in service sectors to grasp the opportunities of networking. Till now, there have been many competing theoretical frameworks, with no universal model or consensus, to open innovation through networking. This paper applies a three-perspective theoretical framework, which embodies considerations of resource acquisition, opportunism minimization, flexibility and commitment to innovation and growth to build a decision tree opting for the organization form (hereinafter referred to as structural or governance mode) of innovation-targeted alliances in services. The model builds on a number of contingencies describing the joint impact of four decision parameters (trust, resource position, environment uncertainty and expected value) on firms’ strategic concerns, and subsequently their preference for alliance governance.