Knowledge Spillover Driven By Institutions: Evidence From The Big Science Project In China

Purpose This study aims to explore the knowledge spillover mechanism in big science projects (BSP) from an institutional perspective by elaborating on the dynamic relationship between institutional dualism and legitimacy. Design/methodology/approach The study conducts an exploratory research and adopts the grounded theory methodology in the context of BSP. Data draw mainly upon nine semi-structured interviews. Findings The knowledge spillovers in BSP are driven by institutions, which work through mechanisms of legitimacy perception. Formal and informal institutions influence organizational and individual behavior through legitimacy pressure and support. Formal institutions impose legitimacy pressure on organizations and individuals, forcing them to cooperate closely to solve problems; informal institutions enable them to adopt innovative strategies and positive attitudes through legitimacy support; all these promote knowledge spillovers in research and development (R&D) activities, engineering practice and regional interaction. Knowledge spillovers enable stakeholders to realize their R&D advancement, manufacturing promotion and management sophistication. Further, regional knowledge diffusion and culture transmission promote regional innovation and social capital accumulation. Research limitations/implications The study develops a theoretical model that shows how knowledge spillover mechanisms happen in BSP from an institutional perspective (the trigger, the channels/process and the impacts). More specifically, this explanation is provided by explaining how formal and informal institutions influence organizational and individual behavior through legitimacy perceptions. Practical implications First, policymakers should recognize and value the guiding, supporting and coordinating role of formal institutions and enrich capital forms to release the legitimacy pressure of stakeholders. Second, management of BSP needs to be capable of coordinating stakeholder relationships and interactions, while management should focus their attention on fostering good organizational routines and shared group value. Third, the local culture and customs should be taken into consideration since it can be an enabling or constraining of BSP. Finally, industries can take advantage of the opportunity to coordinate their R&D efforts to gain competitiveness. Originality/value First, the authors introduce the institutional perspective to analyze the construction process of BSP, which helps to better understand the interactions of stakeholders under the influence of institutions, the dynamic process and impacts of knowledge spillovers. Second, the authors are committed to contributing to the development of knowledge spillover theories by adopting an institutional perspective. The authors furthermore explore and propose the presence of a dynamic mechanism between institutional dualism and knowledge spillovers. In consequence, the authors introduce the concept of legitimacy perceptions, which is a bridge to understanding the interaction between them. Third, by explicitly discussing the actual meaning of our framework, the authors explore the unique potential of institutional arrangement in promoting the knowledge management of complex cross-border cooperation, while seeking to promote its management and administrative practices.