Struggling with Agency Problems in Open Innovation Ecosystem: Corporate Policies in Innovation Hub

Purpose – The purpose of this paper is to discuss the topic of agency problems in service ecosystem for innovation. It specifically explores the corporate policies aimed at encouraging collaboration, so as to prevent opportunistic behaviors within the innovation hub, where service exchange is central for innovation creation. Design/methodology/approach – The authors apply the agency theory framework to the hub as a service ecosystem in order to understand how it would be possible to address agency problems between the firm (principal) and the other actors of the hub (agents), involved in peer-to-peer interactions. The research explores the case study of a high-tech leading company, which is a pioneer in the use of the hub for supporting its innovation process. Data are collected through semi-structured interviews to some key informants of the Hub Program regarding structure and organization; participation; incentives and monitoring. Findings – In service ecosystems, corporate policies are based on commitment, psycho-social incentives and social control may encourage collaboration among the actors, thus contributing to align their own interests to the hub’s innovation common goals. Research limitations/implications – Given the exploratory nature of the research, the paper is based on a single case study. Thus, it is not possible to either generalize the results or evaluate any statistical correlation. Practical implications – The paper provides a wider awareness about the benefits and risks related to service ecosystems for innovation, and advise both managers and practitioners about appropriate corporate policies to better address the agency problems. Originality/value – This study enhances the literature on service ecosystems, highlighting the importance of corporate policies in preventing opportunistic behavior of actors in order to ensure the value co-creation process. It also extends the agency theory application to informal and not-hierarchical contexts. Besides, it suggests practitioners a way to reconcile the different interests of the firm and the other hub’s participants.