This thesis recognizes that organizational culture is a primary determinant of innovation capability and argues the need to better understand this relationship or process as a necessary prerequisite to nurturing it in a more structured and systematic manner. The study explores this relationship within an R&D environment in telecommunications. It draws upon the knowledge management, organisational behaviour and organisational theory literatures to conceptualise organisational culture as a repository of knowledge. Using a soft systems bottom up approach four cultural archetypes with specific knowledge dynamics are identified and developed through a three-phase multi-method research strategy. These provide a clearer understanding of the relationship between organisational culture and innovation capability. The thesis concludes by considering strategies for improving innovation capability through the effective and appropriate movement between these archetypes.

This dissertation consists of three essays examining the role of connectivity in the catch-up process of a nation primarily focusing on East Asian countries. Specifically, I investigate the sourcing of knowledge, especially tacit knowledge, on local innovation capability building and thus catch-up process of a nation. I argue that for any country, sourcing from the diverse pools of tacit knowledge available in different parts of the world is a crucial requirement in maintaining a robust innovation eco-system. This becomes much more important in the catch-up process of a less-developed or emerging economy that is attempting to build local innovation capability. In the first chapter, I lay the theoretical groundwork for the dissertation by reviewing how existing studies have contributed to our understanding of the catch-up process of an economy. Then, in the second chapter, I explore how the openness of an economy underpins contrasting economic outcomes by comparing the economies of South Korea and Brazil. The third chapter emphasizes that the connectivity to the global innovation system is equally important for a more advanced economy such as Japan. Lack of such connectivity could lead to systemic “lock-in” in the long term. This is done by investigating the national systems of innovation of Japan in four knowledge-intensive industries: automotive, electronics, robotics and pharmaceuticals. Using patent data, I demonstrate that compared to other advanced countries such as Germany and Denmark, the Japanese innovation system is quite closed. I speculate that closedness to global innovation systems could be one of the reasons for Japan’s prolonged economic recession and the underperformance of its once world leading firms. The fourth chapter proposes an alternative catch-up strategy by investigating the innovation catch-up processes in Korea and Taiwan. These two Asian economies achieved developed status in a remarkably short period of time. Surprisingly, I found that these two countries are not well-connected to the rest of the world when it comes to innovation networks. These two countries achieved innovation catch-up rapidly by focusing on specific technologies that inherently require less reliance on learning through co-inventor networks. These technologies are the so-called “short cycle” technologies, i.e., technologies where the time period between innovation and maturation is very short. Therefore, relatively advanced technologies can be obtained in an “off-the-shelf” manner through outright purchase, licensing, and other means that do not require in-house wholly-owned innovation systems. / Business Administration/International Business Administration

It is theorized that competition in the global market requires highly skilled human capital with different types and levels of skills, and with transferable skills. Internships are intended to nurture the skills and make students better professionals, better innovators, and more likely to get employment. In this thesis I evaluated these claims by examining the effect of the skills developed by internships on the professional performance, innovation capability and employability of Mexican students. The purpose of this thesis is to evaluate both the mandatory internship program in its ability to improve employability and to test some of the educational theories of workforce improvement and of what skills contribute to workers’ innovation capacity. Internships prepare students for the workplace by giving them opportunities to develop relevant skills. The Committee on the Assessment of 21st Century Skills of the U.S. National Research Council (NRC), identified three categories of workplace skills enabling individuals to face 21st Century challenges: cognitive, interpersonal, and intrapersonal skills. I tested the relevance of these skills to interns’ professional performance using intern evaluation data on interns working at a multinational enterprise in the global steel industry, Ternium Mexico. A general model of internship outcomes was used to predict Main task and learning performance internship outcomes, and ordered logistic regression was used to predict Overall internship performance. The results confirmed that (1) cognitive intelligence or technical skills are necessary but not sufficient for success in executing professional tasks and (2) certain interpersonal and intrapersonal skills were also significantly associated with better professional performance as an intern. vi The ability to innovate is one of the most important and desired meta-skills for individuals, firms, and economies. It is believed that nurturing students’ innovation capability will improve their employability and their ability to deal with a rapidly changing future. A recent conceptual model of Individuals’ Innovation Capability, the D4 innovation model, has four stages: defining, discovering, developing, and demonstrating. Using the same internship evaluation data set, I determined whether the four D innovation skills: defining, discovering, developing and deploying skills, predicted Individuals’ Innovation Capability. The study confirmed that three of the innovation skills, discovery, developing and deploying, increase Individuals’ Innovation Capability. The foundation skills of oral communication and ability to self-update, and the professional competencies of establishing priorities and explicit knowledge also foster individual innovation capability. Internships have often been required for graduation by institutions of higher education because internships are perceived to help students increase their employability as well as provide educational value. I conducted statistical analyses to test whether students’ performance as interns and the number of internships they completed are predictive of their Probability of Employment, controlling for various labor-market conditions. The study analyzed the records of graduates at a private Mexican university who had completed undergraduate degrees as well as mandatory internships. A logistic regression model for job placement four months following graduation included: individual factors, personal circumstances, external conditions, and interactions with external conditions. This study revealed that the performance as an intern played an important role on employment and that employability depended on the interaction of a vii graduate’s personal assets, his/her family connections, and whether or not the labor market was contracting. This thesis is an empirical exploration of educational theory concerning the value of internships and also the skills that internships should foster. Since educational policy is frequently driven by theory, such validation is a potentially useful reality-check for policy makers. This work can inform educational policy and provide the underpinnings for shaping initiatives that benefit students, firms and the region.

Abstract Innovation is a successful key of enterprise in the new generation, and enterprise creates extraordinary value by keeping innovate. Thurow(1996)pointed that mental industry will be the mainstream, and enterprise capability to innovate and use the mental ability is the key to get the competitive advantage. It means enterprise¡¦s assets shifted from the visible resources to the invisible assets, for example, intellectual capital and human capital. This transformation appears the important of human resource and leads the enterprise to pay attention on human resource management. As the reason, the enterprise¡¦s important issue is how to construct the human resource system for enterprise innovation needs and build the innovative culture. This study is using the case study approach. The main propose is analyzing the human resource practice of the prize innovation enterprises, how strengthens the organization innovation capability, and assisting the enterprises achieve the goal. This research also want to find the human resource practice to fit the different innovation flied, and conclude the innovative culture for prize innovation enterprises. To this propose, this research conclude the following result by interview material and literary. 1. Organizational innovation capability with different innovation flied for successful enterprise to innovate. 1.1 Successful product innovation depends on organizational market cognition capability, R&D technology capability, and cross-functional integration capability. 1.2 Successful process innovation depends on organizational R&D technology capability. 1.3 Successful marketing innovation depends on organizational market cognition capability and cross-functional integration capability. 1.4 Successful manage innovation depends on organizational cross-functional integration capability and financial capability. 2. Organizational innovative culture for the successful enterprise to innovate. 2.1 The input of innovative culture depends on the enterprise value emphasized, the leader support, and the resources give. 2.2 The process of innovative culture depends on well communication, clear authorization, and the staff to participate in. 2.3 The output of innovative culture depends on organization learning, try and error, and different thinking. 3. Concluding the human resource practice with different innovative flied for enterprises to innovate. 4. Concluding the human resource practice for enterprises to enhance different organizational innovation capability. 5. Proposing ¡§the innovative strategy map¡¨ as a practice guide in human resource practice. These results provide innovation enterprise not only to enrich organizational innovative culture, but also to enhance the organizational innovation capability for different innovation flied by operating the fit human resource practice. With this fit human resource practice, enterprise can have the biggest innovation achievement in different innovation flied.

While facing a dynamic environment, a company needs innovation to enhance their competitiveness and to continue to grow in terms of profits. For the company, the question becomes not ¡§whether¡¨ but ¡§how¡¨ to innovate. This thesis, with a perspective of human resources, explores how organizational innovation capabilities, innovative culture, and human resource practices directly affect the effectiveness of innovation. In addition, the indirect impact of human resource practices intertwined with innovation capabilities and innovative culture as a mediator is also under scrutiny. This thesis is conducted through opinion survey, with 201 samples out of 250 manufacturers introduced by Tianxia Magazine. With the valid 111 questionnaires replied by the chairs or directors of human resources department in each company, the findings of this thesis can be summarized as follows: 1. Innovation capability impacts the innovation performance positively. 2. Innovative culture impacts the innovation performance positively. 3. Human resource practices impacts the innovation performance positively. 4. Human resource practices impacts the innovation capability positively. 5. Innovation capability has mediating effect between human resource practices and innovation performance. 6. Human resource practices impacts the innovative culture positively. 7. Innovative culture has mediating effect between human resource practices and innovation performance.

Titel: Ökad innovationsledningsförmåga genom partnerskap i offentlig sektor.-En studie om hur partnerskapet LOFT kan stödja kommunledningar i deras utveckling mot ökadinnovationsförmåga och tillämpning av innovationsledning.Forskningsfrågor: F1. Hur fungerar innovationspedagogiken inom ramarna för LOFT?F2. Vilka eventuella möjligheter och utmaningar finns med att utöka partnerskapet LOFT för att ökainnovationsförmågan inom offentlig sektor i Sverige?Syfte: Syftet med studien är att undersöka eventuella möjligheter och utmaningar med att användapartnerskapet LOFTs innovationspedagogik i samtliga 290 kommuner i Sverige, för att på så sätt kunnaåstadkomma innovationsförmåga och tillämpning av innovationsledning i Sveriges alla kommuner.Metod: Studiens riktning, forskningsfrågor och syfte har tagits fram genom samproduktion med studiensuppdragsgivare RISE. Med utgångspunkt i forskningsfrågorna antogs sedan en fallstudiedesign för attstudera partnerskapet LOFT. Den kvalitativa metoden föll sig således naturligt och en abduktiv ansats hartillämpats. Data har samlats in genom observationer, semistrukturerade intervjuer och reflekterandeprojektdagbok. Triangulering har tillämpats för att kontrollera resultat och därmed höja trovärdigheten förstudien och dess resultat.Slutsats: Innovationspedagogiken inom ramarna för LOFT utgår från partnerskapskommunerna och derasbehov. Innovationspedagogiken och partnerskapet utgör en struktur som ger kommuner möjlighet arbetalångsiktigt med innovationsledning. Innovationspedagogiken omfattar stödjande insatser, nätverk,kunskapshöjande insatser, kreativt klimat och bidrar till lärande i den egna organisationen.Innovationspedagogiken bygger även på en grundtanke om att skapa en psykologiskt tillåtande och tryggmiljö, där partnerskapskommunerna vågar testa, dela med sig av utmaningar tillsammans med andra ochdra lärdomar för att utvecklas.Innovationspedagogiken inom ramarna för LOFT utgör ett väl utvecklat koncept. Möjligheter att designaoch paketera detta koncept för att på så sätt tillgängliggöra det för flera kommuner har identifierats. Enutmaning som identifierats kopplat till uppskalning av partnerskapet är att det kommer ställas krav på attutöka det team som idag utgör ledningen av LOFT med fler personer för att kunna ha kvar den stödjandefunktionen och fortsätta leverera värde. Vid en uppskalning innebär det att en ny testbädd bör utvecklas iform av “LOFT 2.0”, där den successiva uppskalningen kommer kunna ske. Att ta fram läromedel skullekunna möjliggöra för att nå ut till fler kommuner samt få igång arbetet i den egna organisationen tidigare,då det inte ställer samma typ av krav på resurser från LOFT.Även en rad olika utmaningar har identifierats kopplat till uppskalningen. Hur bibehålls delarna av detrelationella och stödjande partnerskapet som finns idag? Pedagogiken tar idag sin utgångspunkt i denpsykologiskt tillåtande och trygga miljön, vilket är något som inte får gå förlorat. Även utmaningar kringden finansiella delen, både ur ett partnerskapskommun- och projektägarperspektiv. Också det egna arbetetpå hemmaplan, som ställer krav på kommunens vilja, driv och passion för förändring. En uppskalningkräver att samtliga kommuner besitter förmåga och vilja att implementera ett innovationsledningssystem.Stödet som LOFT ger respektive partnerskapskommun grundar sig i genomlysningar gjorda i den enskildakommunen. Ett omfattande arbete som kräver resurser om det ska kunna genomföras på samma sätt i ett större partnerskap. Något som bör undersökas vidare. Vilken typ av organisering kan stötta och bibehålladessa viktiga pusselbitar av innovationspedagogiken som LOFT utvecklat? / Title: Increased innovation management through partnerships in the public sector.-A study about how the partnership LOFT can support municipal management in their developmenttowards increased innovation capacity and application of innovation management.Research questions: RQ1. How does innovation pedagogy work within the framework of LOFT?RQ2. What possible opportunities and challenges are there in expanding the LOFT partnership to increaseinnovation capacity within the public sector in Sweden?Purpose: The purpose of the study is to investigate possible opportunities and challenges with using thepartnership LOFT's innovation pedagogy in all 290 municipalities in Sweden, in order to be able to achieveinnovation capacity and application of innovation management in all of Sweden's municipalities.Method: The study's direction, research questions and purpose have been developed through co-production with the study's client, RISE. Based on the research questions, a case study design was thenadopted to study the partnership LOFT. The qualitative method thus came naturally, and an abductiveapproach has been applied. Data has been collected through observations, semi-structured interviews, andreflective project diaries. Triangulation has been applied to check results and thereby increase thecredibility of the study and its results.Conclusion: The innovation pedagogy within the framework of LOFT is based on the partnershipmunicipalities and their needs. The innovation pedagogy and the partnership form a structure that givesmunicipalities the opportunity to work long-term with innovation management. The innovation pedagogyincludes supporting efforts, networks, knowledge-raising efforts, creative climate and contributes tolearning in the own organization. The innovation pedagogy is also based on a basic idea of creating apsychologically permissive and safe environment, where the partnership municipalities dare to test, sharechallenges together with others and learn lessons to develop.The innovation pedagogy within the framework of LOFT is a well-developed concept. Opportunities todesign and package this concept in order to make it available to several municipalities have beenidentified. A challenge identified in connection with scaling up the partnership is that there will bedemands to expand the team that currently makes up the management of LOFT with more people to retainthe supporting function and continue to deliver value. In the case of a scale-up, this means that a new testbed should be developed in the form of "LOFT 2.0", where the successive scale-up will be able to takeplace. Developing teaching materials could make it possible to reach out to more municipalities and getwork started in the own organization earlier, as it does not place the same type of demands on resourcesfrom LOFT.Several different challenges have also been identified linked to the scale-up. How are the elements of therelational and supportive partnership that exist today maintained? Pedagogy today takes its starting pointin the psychologically permissive and safe environment, which is something that must not be lost. Alsochallenges around the financial part, both from a partnership municipality and project owner perspective.Also, the own work at home, which places demands on the municipality's will, drive and passion forchange. Scaling up requires that all municipalities possess the ability and willingness to implement aninnovation management system. The support that LOFT provides to the respective partnership  municipality is based on reviews carried out in the individual municipality. Extensive work that requiresresources if it is to be carried out in the same way in a larger partnership. Something that should beinvestigated further. What type of organization can support and maintain these important puzzle pieces ofthe innovation pedagogy that LOFT developed?

A pesquisa teve como objetivos identificar quais as práticas gerenciais criadas internamente, ou simplesmente absorvidas de outras empresas que estão sendo utilizadas pelas empresas inovadoras; e analisar como estas práticas contribuem para a capacidade de inovação manifestada nas empresas pesquisadas. As questões de pesquisa respondidas foram: quais as práticas gerenciais adotadas nas empresas inovadoras em estudo que contribuem para a capacidade de inovação manifesta; e como estas práticas gerenciais contribuem para a capacidade de inovação das empresas em estudo. A pesquisa parte do pressuposto que a inovação não é gerada apenas por resultados de pesquisa e desenvolvimento (P&D). As práticas gerenciais antecedem e, em princípio, podem contribuir para a capacidade de inovação da empresa. O pressuposto assumido nesta tese é que a inovação é de natureza empresarial e não simplesmente de natureza tecnológica. O método utilizado foi o estudo de múltiplos casos. Foram analisadas 5 empresas de grande porte, consideradas inovadoras. Os instrumentos de coleta de dados foram a entrevista, a observação direta e a análise de dados secundários, tais como relatórios anuais, artigos publicados em periódicos nacionais e internacionais e o conteúdo das páginas institucionais destas empresas na Internet. As práticas gerenciais foram classificadas em cinco categorias: estratégia e posicionamento de mercado, estrutura e ambiente organizacional interno, gestão de tecnologia, gestão de pessoas e gestão de parcerias. Entre as práticas identificadas estão: antecipar necessidades dos clientes; prospecção tecnológica; avaliação constante de produtos; ambientes abertos; comunicações horizontais e verticais; poder descentralizado; estrutura em rede; formação de grupos multidisciplinares; acompanhamento contínuo de processos; estímulo ao empreendedorismo corporativo; estímulo à criatividade; tolerância ao erro; desenvolvimento de competências; horário de trabalho flexível; criação e manutenção de laboratórios; registro de patentes; proteção das tecnologias; formação de parcerias; entre outras. Os resultados da pesquisa replicam a teoria, mostrando que as práticas adotadas acrescentam contribuições para a capacidade de inovação das cinco empresas inovadoras analisadas. As pessoas são motivadas a inovar. As práticas promovem a sinergia entre as pessoas e as diversas áreas da empresa, criando um ambiente propício à inovação. / The objective of this research is to identify the internal management practices created or absorbed by other firms that are being used by innovation firms and to analyze how it contributes to the innovation capability present in the firms analyzed. The questions research answered were: what are the management practices used in the innovation firms studied that contribute to innovation capability and how they contribute to the innovation capability of the firms studied. There is a presupposition that innovation is not only created by research and development results. The management practices are preceding and can contribute to the innovation capability of firms. The nature of innovations is entrepreneurial and not only technological. The method used was a multiple case study. Five big firms, considerate innovative, were analyzed. The data collected was by interview, direct observation and secondary data analyzes, such as annual reports, papers from national and international periodicals and the content of institutional sites of firms in the Internet. The management practices were classified into five classes: strategy and market position, network and internal organization environment, technology management, people management and partnership management. Among the practices identified there are: anticipating consumer needs; technology prospecting; constantly product evaluate; open door policy; horizontal and vertical open communication; power decentralized; networks; multidisciplinary groups; continued accompaniment of process; incentive intrapreneurship; stimulus to creativity; mistakes tolerance; competence development; time work flexible; create and maintenance of laboratory; patent registers; technology protections; partnership formation. The results of research reply the theory and it shows that the management practices adopted ads contributions to innovation capability of five innovation firms analyzed. People are motivated to innovate; the management practices do a synergy among the people and the different areas of company and it creates an environment propitious to innovation.

Essa dissertação tem como objetivo analisar a capacidade de inovação do cluster do agronegócio e como a firma se beneficia dela. Parte-se da premissa que inovação é uma necessidade para as firmas e as relações interoganizacionais é uma alternativa para que ela ocorra. Dentre essas relações, os clusters se destacam, havendo estudos que mostram que as firmas inseridas nessas aglomerações tendem a ser mais inovativas. Sendo assim, buscou-se compreender a capacidade de inovação de cluster, os benefícios dela oferecidos às firmas e as relações das firmas com cluster em diferentes estágios de desenvolvimento. Para isso, realizou-se uma pesquisa exploratória com dois clusters do agronegócio, da atividade da ovinocultura. Os casos selecionados, de Sisteron (França), em estágio de crescimento, e do Alto do Camaquã (Brasil), em estágio emergente. Inicialmente, buscou-se a descrição do contexto local e do cluster, compreendendo os atores inseridos nas aglomerações. Em seguida, os casos foram analisados a partir de elementos previamente estabelecidos pela literatura: contexto, estratégia coletiva, políticas públicas, comercialização, pró-atividade, relações externas, transmissão, colaboração, assimilação, transformação e aplicação do conhecimento, governança, infraestrutura, recursos financeiros e humanos. A partir disso, realizou-se uma comparação entre os dois clusters a fim de compreender as divergências em razão da diferença de estágio de desenvolvimento. Por fim, chegou-se a um modelo de capacidade de inovação do cluster, composta pela capacidade de gestão estratégica, capacidade de relações e aprendizagem, capacidade de desenvolvimento tecnológico e mercadológico e capacidade de gestão operacional. Além disso, entendeu-se que as firmas de clusters em crescimento possuem mais garantias e comprometimento com a estratégia coletiva do aglomerado do que as de clusters emergentes. Ainda, evidenciou-se uma relação inversa entre os benefícios propostos pela capacidade de inovação do cluster e as necessidades usuais das firmas, trazendo a complementariedade e interdependência das capacidades, o que proporciona uma robustez em relação à inovação das firmas inseridas nos aglomerados. / This research aims to analyze the agribusiness cluster innovation capability and how the firm benefits from it. The premise is that innovation is a necessity for firms and their interrelations are an alternative for it. Among these relationships, clusters stand out, with studies showing that firms in clusters tend to be more innovative. Thus, this research includes to understand the cluster innovation capability, the benefits that it offer to firms and the relationship of firms in cluster from different stages of development. For this, there was an exploratory research with two agribusiness clusters of sheep industry. Two cases were analyzed: the first from Sisteron (France), in the growth stage, and the second from Alto Camaquã (Brazil), in emerging stage. Initially, was realized a description of the local context, then the clusters and the actors inserted in these agglomerations were analyzed. The analysis emerged from elements previously established in the literature: context, collective strategy, public policy, commercialization, pro-activity, external relations, transmission collaboration, assimilation, transformation and application of knowledge, governance, infrastructure, financial resources and human resources. From this, there was a comparison between the two clusters in order to understand the differences due to their development stage. Finally, we arrived to a model of cluster innovation capability, composed by the strategic management, relationships and learning, technological development and marketing and operational. Moreover, it was understood that firms in growing clusters have more guarantees and commitment to the collective strategy of the cluster than the emerging clusters. Also showed an inverse relationship between the benefits offered by cluster innovation capability and the usual needs of firms, bringing the complementarity and interdependence of capabilities, which provides robustness for innovation firms inserted in clusters.

O ambiente de negócios está sob severa mudança ultimamente, requerendo das empresas não apenas a diferenciação da concorrência, mas também o desenvolvimento da capacidade de adaptação a novos cenários como uma forma de manter a competitividade e até mesmo sobreviver. Esta não é uma tarefa fácil, especialmente para grandes corporações, onde as políticas, regras, burocracia, comportamentos ortodoxos, para listar alguns, conspiram para dificultar a inovação. É ainda mais difícil quando estas empresas operam em mercados bem estabelecidos, com produtos maduros e até padronizados. Não fosse isso o suficiente, no Brasil tais corporações também precisam enfrentar desafios adicionais em relação à economia do país e à burocracia, bem como um sistema nacional de inovação ainda emergente. A literatura sobre inovação é vasta, e inovação em si é um tema cercado por vários aspectos diferentes. No entanto, até onde sabemos, não existem artigos que tratam da questão de como projetar e implantar um framework de gestão da inovação para uma corporação como as características descritas acima. O objetivo deste trabalho é ajudar essas empresas neste esforço, descrevendo e analisando a concepção e implementação de um framework de gestão da inovação em uma grande empresa brasileira de aço, bem como gerar conhecimento para apoiar futuras pesquisas acadêmicas no campo. O objetivo foi atingido através de uma pesquisa-ação e os resultados não só confirmaram a importância dos fatores de influência para inovação, como estratégia, liderança, cultura, recursos e sistemas de gestão, mas também apresentaram maneiras de combinar esses fatores de forma inter-relacionada para criar uma capacidade de inovação sustentável. / The business environment has been under severe change lately, requiring firms not only to differentiate themselves from competition, but also to develop capabilities to adapt to new scenarios as a way to keep competitiveness and even to survive. This is not an easy task, especially for large corporations, where polices, rules, bureaucracy, orthodox behaviors, to list a few,, collude to hinder innovation. Even more difficult when these corporations operate in well established markets, with mature and even standardized products. Would that not be enough, in Brazil such corporations also need to face additional challenges regarding the country`s economy and bureaucracy as well as facing an emergent national innovation system. The literature on innovation is vast and innovation itself is a topic surrounded by several different aspects. However, to our knowledge, there are no articles dealing with the question of how to design and implement and innovation management model for a corporation such as those described above. The objective of this work is to help these companies on this endeavor by describing and analyzing the design and implementation of an innovation management model in a large Brazilian steel company, as well as to generate knowledge to support further academic research on the field. The objective was accomplished through an action research and the results not only confirmed the importance of innovation drives such as strategy, leadership, culture, resources and management systems, but also presented ways of combining these drives in an intertwined fashion to create a sustainable innovation capability.

This paper investigates governance mechanisms in international technology alliances (ITAs), firm-level innovation capabilities, and performance outcomes in the mobile computing market. This high-tech market is characterized by numerous cross-border strategic technology collaborations between hardware (HW) and software (SW) firms. Anchoring this work in the relational view, transaction cost economics, and the resource-based view, I develop a model and empirically test and validate relationships related to behavioral ITA governance mechanisms, innovation capabilities, and business performance. In the international cross-industry context, the findings explain to what extent complementary technology resources, through a relational governance mechanism, contribute to the innovation capabilities and superior business performance of high-tech firms, providing a competitive advantage. The data which is analyzed using partial least squares (PLS) path modeling, indicates technological commitment is a factor in expediting technology resource exchange in ITAs between HW and SW firms. The findings also show that the multi-dimensional business performance of firms is only influenced by market development capability, and not new product development capability in product innovation. The results are consistent, regardless of controlling for firm size, industry type, partner-specific experience, and alliance duration in the model. Thus, this research offers insights into how heterogeneous HW and SW high-tech firms in the emerging high-velocity market benefit from a relational governance mechanism in ITAs, thereby establishing competitive advantage through firm-level innovation capabilities. It also explains the relationships between firm-level product innovation mechanisms and business performance. Furthermore, this research provides evidence of the methodological usefulness of PLS path modeling in explaining new phenomena in international business, strategic management, and innovation fields.