Trust and dynamic governance mechanisms in the university-industry R&D alliances

This paper aims to examine how the dynamic interplay of governance mechanisms of the university-firm R&D alliance reduces obstacles and enables the successful commercialization of research collaboration output.,A longitudinal case research and retrospective strategy were used to collect relevant data and information in the four university-and-firm alliance teams collaborating on R&D projects in Thailand during 2008-2014. In-depth interviews and meetings were conducted with representatives of all partners and R&D project teams.,The authors found that formal and informal control mechanisms act as complementary forms of governance. The informal control (trust) serves as the frame of intentions whether the formal control is interpreted as a guideline or a commitment. Both formal and informal control mechanisms must be put in place to successfully and sustainably develop collaborative research into a commercial product.,This study investigated four Thai government-funded research collaboration teams from a single industry. It would be worth investigating such research collaboration in other industries and those without any government funding.,This study applied an exploratory case research method which is rarely used in research on R&D alliance teams. It generates cross-functional insights on how to build trust in such R&D context, especially in an emerging economy.