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<p>This paper examines the evolution of knowledge sharing, governance mechanism and innovation capabilities in IT outsourcing cooperation. Using a co-evolutionary approach, we develop a framework that shows how knowledge sharing, governance mechanism evolve. Especially, the transactional and knowledge governance both are adopted, which how impact innovation capabilities. Propositions linking the concepts are provided as guides for future empirical research.<strong></strong></p

How does Knowledge Sharing and Governance Mechanism Affect Innovation Capabilities? –From the Coevolution Perspective