Governing mobile service innovation in co-evolving value networks

Mobile service innovation requires a broad set of resources and capabilities that are not controlled by one single actor. Equipment manufacturers, operators, content providers and application developers have to work together in so-called value networks in order to develop and offer services to end-users. There is serious debate as to how the collective actions of these interdependent but legally separate actors can be governed. In the past, operators controlled most activities in so-called walled gardens, but these are now being replaced by more open models of collaboration. These developments may be driven by technological, market-related and regulatory forces in the environment, but transitions between the phases of service innovation may also play a role. A co-evolutionary perspective that explains governance dynamics by combining these multi-level factors is lacking, as existing literature mostly takes a static perspective. This study provides insight into how and why the mechanisms used to govern mobile service innovation in value networks change over time. Building on theories on value networks, governance, service innovation and co-evolution, propositions are developed on the use of authority-based, contracts-based and trust-based governance. The propositions are refined and tested in qualitative case studies in the commercial and police domain, followed by a quantitative survey among practitioners and experts. Besides theoretical and domain-related implications, the findings provide a basis for a research program on governing ICT-enabled service innovation in value networks.