Network structure and innovation: The leveraging of a dual network as a distinctive relational capability
Open accessAbstract
This paper employs comparative longitudinal case study research to investigate why and how strong dyadic interfirm ties and two alternative network architectures (a ‘strong ties network’ and a ‘dual network’) impact the innovative capability of the lead firm in an alliance network. I answer these intrinsically cross‐level research questions by examining how three design‐intensive furnishings manufacturers managed their networks of joint‐design alliances with consulting industrial design firms over more than 30 years. Initially, in order to explore the sample lead firms' alliance behavior, I advance an operationalization of interorganizational tie strength. Next, I unveil the strengths of strong ties and the weaknesses of a strong ties network. Finally, I show that the ability to integrate a large periphery of heterogeneous weak ties and a core of strong ties is a distinctive lead firm's relational capability, one that provides fertile ground for leading firms in knowledge‐intensive alliance networks to gain competitive advantages whose sustainability is primarily based on the dynamic innovative capability resulting from leveraging a dual network architecture. Copyright © 2007 John Wiley & Sons, Ltd.
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GVC networks can be heterogeneous in terms of depth, density, openness, and the presence of structural holes.
“While a GVC can typically be conceptualized as an asymmetrical or high centrality network with a lead firm at its centre (Kano, 2018), these networks can also be heterogeneous in terms of such characteristics as depth, density, openness, and the presence of structural holes (Capaldo, 2007;Rowley, 1997).”
From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Capaldo, 2007
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Networking Capability and New Product Development
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- Authors
- Capaldo, A.
- Affiliations
- Università Cattolica del Sacro Cuore (IT)
- Corresponding author
- Capaldo, Antonio
- ORCID
- Capaldo, Antonio
- Venue
- Strategic Management Journal
- Publisher
- Wiley
- Published
- 2007-03-07
- Volume
- 28
- Issue
- 6
- Pages
- 585-608
- ISSN
- 0143-2095 (ISSN-L)
- 1097-0266
- OpenAlex
- W2004383939
- Cited by
- 986
- References
- 68
- Citations by year
- 2026: 26 · 2025: 25 · 2024: 34 · 2023: 41 · 2022: 46 · 2021: 81 · 2020: 95 · 2019: 65 · 2018: 60 · 2017: 65 · 2016: 59 · 2015: 70 · 2014: 64 · 2013: 62 · 2012: 58
- FWCI
- 79.26
- Type
- journal article
- Language
- en
- Open access
- green
- core.ac.uk
- Locations
- Strategic Management Journal (publishedVersion)
- SSRN Electronic Journal (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategy and Innovation
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Entrepreneurship Studies and Influences
- Keywords
- inter-firm networks, network architecture, dual network, strong ties, weak ties, relational capabilities, innovation ability, alliance networks, competitive advantage
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