Cited by 986Innovation and Knowledge ManagementBusiness Strategy and InnovationEntrepreneurship Studies and Influences

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Network structure and innovation: The leveraging of a dual network as a distinctive relational capability

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Capaldo, Antonio·2007·Strategic Management Journal

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Abstract

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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Business model innovation in family firms: dynamic capabilities and the moderating role of socioemotional wealth
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“However, some studies state that family firms are also underlying certain locked-in effects (Capaldo 2007; Maurer and Ebers 2006).”
BackgroundInfluential
Structuring inter-organizational R&D projects: Towards a better understanding of the project architecture as an interplay between activity coordination and knowledge integration
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“For example, these literatures have considered ideas as a result of network structure (e.g., Capaldo, 2007) or occupying an advantageous network position (e.g., Burt, 2004), examined the identification of entrepreneurial market opportunities (e.g., Shane, 2012), and shown how ideas are implemented…”
Background
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“…it has been argued that strong and weak ties are not in conflict; rather, they both contribute to the evolution and efficacy of the network (Capaldo, 2007; Uzzi, 1997); while Ahuja (2000) and Gilsing et al. (2007) suggest considering the issue in relation to the specific purposes of the…”
Background
Balancing diversity in innovation networks
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“Capaldo (2007) suggested that innovation is promoted by weak ties on a network level, while firms benefit from strong relationships with their core partners.”
Background
Platform control during battles for market dominance: The case of Apple versus IBM in the early personal computer industry
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“Capaldo (2007) argues that a core – periphery network structure is particularly effective for innovation purposes: it has strong connections in the core of the network that may increase network effectiveness, it may lock the core partners together into executing their existing ideas, and it may…”
Background
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“Relational capability is defined as a firm’s capability to create, manage, and leverage the overall structure of the relationships in its network over time [45].”
Background
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Relational capabilities in Thai buyer-supplier relationships
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Orchestrating for lead user involvement in innovation networks
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“…innovation-targeting collaboration and reach adequate structure without hampering the flexibility needed for the system to be innovative (see, e.g., Capaldo, 2007; Dhanaraj and Parkhe, 2006; Dyer and Nobeoka, 2000; Leonard-Barton, 2007; Kenis and Provan, 2006; Luo, 2008; McGuire, 2002; Möller,…”
Background
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The Emerging Innovation Ecosystems and "Valley of Death": Towards the Combination of Entrepreneurial and Institutional Approaches
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“…the traditional innovation systems approach (Lundvall & Johnson, 1992; Cooke et al., 1998), and builds upon the extensive literature in the field of innovation-related networks (Capaldo, 2007; Soh, 2010; Baum et al., 2014; Kapoor & Mahn, 2013; Patel et al., 2014; McIntyre & Srinivasan, 2016).”
Background
Personal ties in university-industry linkages: a case-study from Argentina
Arza, V., & Carattoli, M. (2016) · The Journal of Technology Transfer · doi:10.1007/s10961-016-9544-x · Cited by 52
“On the contrary, strong ties are relevant in assimilating or creating (Tiwana, 2008; Capaldo, 2007; Smith et al., 2005) fine-grained and complex knowledge and information that is more detailed, deeper and specific in a particular interest area for the individuals involved (Rowley et al.”
Background
Searching through the jungle of innovation conceptualisations
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The female entrepreneur’s financial networks: accessing finance for the emergence of technology-based firms in Jordan
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“These connectionist studies have examined the structural characteristics of networks that help in accessing critical resources for the venture (Capaldo 2007; Hampton, McGowan, and Cooper 2011; Hite and Hesterly 2001; Martinez and Aldrich 2011; Semrau and Werner 2014; Steier and Greenwood 1999),…”
Background
How do structural holes promote network expansion?
Guo, M., Yang, N., Wang, J., Zhang, Y., & Wang, Y. (2021) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2021.121129 · Cited by 49
Effects of Relational Capabilities and Power Asymmetry on Innovativeness and Flexibility of Sub-Sahara Africa Small Exporting Firms
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“Given that relational capabilities are the organizational assets that facilitate competitiveness in developing and implementing joint activities with external partners (Capaldo 2007), they “lubricate” effective interfirm relationships (Hunt, Arnett, and Madhavaram 2006) and knowledge transfer between trading partners,…”
Background
The interplay between key marketing and supply chain management capabilities: the role of integrative mechanisms
Gölgeci̇, İ., & Gligor, D. M. (2017) · Journal of Business and Industrial Marketing · doi:10.1108/jbim-05-2016-0102 · Cited by 49
“10 ties to drive increased innovation performance (Capaldo, 2007), and the research participants 11”
BackgroundInfluential
The mediating effect of logistics integration on supply chain performance
Alam, A., Bagchi, P. K., Kim, B., Mitra, S., & Seabra, F. (2014) · The International Journal of Logistics Management · doi:10.1108/ijlm-05-2013-0050 · Cited by 52

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
DOI: 10.1002/smj.621
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
Licence: onlinelibrary.wiley.com/termsAndConditions#vor (vor)
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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Network structure and innovation: The leveraging of a dual network as a distinctive relational capability

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