Abstract Plenty of literature have studied on Internet of things (IoT), however, little researches have examined its industry alliance governance. This research investigates the relationship between the treatment of relational governance and technological innovation in IoT. To develop a model that links relational governance and technological innovation, we capture public data and filed research data from Alliance of Sensing China Internet of Things (ASCIOT). We employ confirmatory factor analysis and structural equation modeling to conduct analysis. Through data analysis, we find that differential factors have an impact on the technological innovation. Relational governance has a significant positive impact on organization trust; the relational governance has no significant positive impact on resource flow; the relational governance has an indirect impact on technological innovation through the complete mediation role of organization trust and resource flow. Furthermore, a good organization trust will promote the intercorporate technology alliances and enhance the ability of the enterprise to innovate. Our model has high value for future industry alliance governance practices.
Yun-fei Shao's research interests include human resource management, emerging technology management and innovation management