Research On The Formation Mechanism Of The CoPS Innovation Risk

CoPS (complex products and systems) refers to those complex, high-value, engineering-intensive capital goods and project, including large telecommunication system, aerospace system, intelligent transportation system, etc. In recent years, under the dual function of reality demand and policy guidance, China’s CoPS innovation has become the focus of world attention, such as the subway, high-speed railway as well as the3G communication system. But behind the rapid development of CoPS innovation, its risk is seriously ignored while the resulting loss is large and lesson profound. An in-depth study of CoPS innovation risk and providing CoPS innovation integrator with practical guidance for risk control has become an urgent task in theoretical circles, especially for innovation management.The key of risk research lies in disclosing the risk formation mechanism. There are two problems in previous studies of CoPS innovation, one is discussing control without mechanism, which leads to low efficiency in risk control in an irrelevant way; the other problem is focusing on object risk such as environment and technology without realizing that it is person who is the first element in engineering project management. Based on this, the present study deeply grasps "the participation of multi-subjects" which is CoPS’substantive characteristics, and introduces stakeholder perspectives to define the question under discussion as disclosing the black-box of CoPS innovation risk formation mechanism. First, integrating stakeholder theories and property right theories (transaction cost economics) based on literature organization, and building a risk formation mechanism model as "Interest-Power Asymmetry—opportunistic behavior—CoPS innovation risk". Second, using exploratory case study method, refines and revises the model, and introduces regulated variable "relationship strength" as well as relevant control variable. In the end, using questionnaire method, structural equation model and Hierarchical regression models, empirically tests three stakeholders—customer, employee and subcontractor, and also combine and discuss the results with current literature.The research confirms the existence of risk formation mechanism chain, namely Interest-Power Asymmetry—opportunistic behavior—CoPS innovation risk, relationship strength plays a role as front-end regulation. The research conclusion varies among the three subjects:intermediation of customer latent opportunistic behavior is not significant; regulation of employee relationship strength is not significant, and the effect of subcontractor latent opportunistic behavior is not significant in contrast with dominant opportunistic behavior. Based on above conclusions, the present study proposes risk control process of CoPS innovation integrator, and three principles of risk control:balance of power, nip an evil in the bud and highlight monitoring of subcontractor; five basic strategies:contract mechanism, dynamic balance, relationship governance, reputation mechanism and subcontract network. The main innovation of the present study is the introduction of a perspective of stakeholder interest-power asymmetry to CoPS risk research, and builds a new risk formation mechanism model, and makes an empirical research with case study method as well as large sample statistics method.