Purpose -The purpose of this paper is to examine the impact of mediated power asymmetry on relational risk perception and modes of governance mechanism (intention-based trust and unilateral control). Design/methodology/approach -Survey research was conducted to collect data from 112 new product development (NPD) relationships and structural equation modeling was conducted to test the hypotheses. Findings -The results suggest that benefiting from mediated power asymmetries by a firm is positively related to the relational risk perceived by its partner firm. This perception influences intention-based trust to partner firm negatively and exercising of unilateral control positively. It was also found that the relationship between mediated power asymmetry and governance modes is mediated by relational risk perception. Originality/value -This paper enhances the understanding of NPD relationships by examining the key mechanisms through which governance decision modes are influenced. In particular, the paper shows how mediated power asymmetries through affecting relational risk perception influence two governance modes including intention-based trust and unilateral control.

Purpose-Inter-organizational arrangements are increasingly playing an important role in new product development (NPD). This article aims to investigate the links among power, risk, and governance in these kinds of relationships. Design/methodology/approach-The authors investigated the links based on the data collected from 112 respondents representing 112 different NPD relationships. Findings-The results of structural equation modeling revealed that, in the situation where coercive power is imbalanced between partner firms, the weaker partner perceives relational risk while imbalances in non-coercive power do not influence relational risk perception significantly. The results also showed that relational risk perception is strongly associated with governance modes in such a way that negatively influences trust and the norm of information sharing, and positively affects vertical control, respectively. Further investigations revealed that the influence of power bases on governance modes was mediated through the relational risk perception. Originality/value-This article contributes to a better appreciation of the factors that account for important determinants of opportunistic behavior of partner firms (i.e. power asymmetries) and governance modes that are available for companies in order to impede relational risks.

Purpose -This paper aims to examine the impact of trust, norm of information sharing, and vertical control on relational ties in new product development (NPD) relationships. Design/methodology/approach -Survey research was conducted to collect data from 112 NPD relationships and structural equation modeling was conducted to test the hypotheses. Findings -The results suggest that trust and norms of information sharing are positively related to relational ties, while vertical control and relational ties are negatively related. Three independent variables (i.e. trust, norm of information sharing, and vertical control) could significantly predict relational ties. It was also found that there are threshold effects for independent variables as they influence relational ties. Originality/value -The study enhances the understanding of NPD relationships by examining the key modes of governance through which relational ties are influenced.

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This paper examines the impact of governance modes (norm of flexibility, trust, and monitoring) on NPD cycle time and the mediating role of relational ties strength. Our sample consists of 112 firms that were involved in NPD relationships. The results of structural equation modelling suggest that the trust and norm of flexibility are positively related to strength of relational ties while monitoring and strength of relational ties are not significantly related. On the other hand, relational ties strength is positively related to NPD cycle time. Results also show that the impact of trust and norm of flexibility on NPD cycle time are mediated by the strength of relational ties. Finally, implications for research, theory, and practice are discussed.