Managerial Controls and Cooperative Networks in Business Model Innovation

ABSTRACT Objective: this article examines the mediating role of formal and informal controls in the relationship between cooperative networks and business model innovation in companies located in technology parks. It draws on the resource-based view literature, assuming that the formal and informal controls of companies in such locations support the capture and use of resources from cooperation networks with other companies in the same location and their park. Methods: data were collected from 94 managers and analyzed using partial least squares structural equation modeling (PLS-SEM). Results: the findings indicate that formal controls mediate the relationship between cooperative networks and business model innovation, contrasting with the lack of statistical significance observed in informal controls. When combined, formal and informal controls exhibit a mediating effect. Conclusions: the research reveals the intervening role of formal controls, indicating a short-term perspective on the resources available in cooperation networks, in contrast to informal controls, which play this role in the long term only when combined with formal controls. These findings contribute to the literature and managerial practice and emphasize the importance of (re)designing managerial controls to enhance the benefits of networks in business model innovation.