Network structure and collaborative innovation processes—A comparative analysis of two elderly service networks in Shanghai

Summary How does the structure of government‐funded service networks affect the process of service innovation? We have conducted a comparative analysis of the structure and processes of collaborative innovation of 2 government‐funded community‐based elderly service networks in Shanghai. We have found that in consistent with the literature, a network that has a network administrative organization structure is better able to manage the process of service innovation in a way that balances the need to achieve government policy goals on the one hand and the imperative to facilitate bottom‐up citizen participation on the other. Surprisingly, contrary to what prior studies have suggested, we have found that a network in which a lead organization plays a dominant role, despite its more centralized process of service innovation, is often able to deliver a variety of high‐quality and low‐cost services addressing citizens' needs. With the leadership provided by the network lead organization and its close affiliation with the street‐office government, the network has been able to solicit government support. Such a hierarchical yet responsive state‐society relation has emerged as a result of the coalescence of a corporatist state legacy and an increasing pressure for local governments to seek citizens' support in service delivery.