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Network structure and innovation: The leveraging of a dual network as a distinctive relational capability
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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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“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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BackgroundNetworking Capability, Network Structure, and New Product Development Performance
Mu, J. (2014) · IEEE Transactions on Engineering Management · doi:10.1109/tem.2014.2359160 · Cited by 47
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BackgroundIt’s in the Mix: How Firms Configure Resource Mobilization for New Product Success
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Liao, Z., Weng, C., Long, S., & Xiao, Z. (2020) · Technology Analysis and Strategic Management · doi:10.1080/09537325.2020.1821876 · Cited by 47
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BackgroundZdolność sieciowa jako czynnik przewagi konkurencyjnej na rynku przedsiębiorstw
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BackgroundExpósito‐Langa, M., Molina-Morales, F. X., & Tomás‐Miquel, J. (2015) · Scandinavian Journal of Management · doi:10.1016/j.scaman.2015.06.001 · Cited by 45
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BackgroundInnovation in clusters: exploration capacity, networking intensity and external resources
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Henneberg, S. C. M., Gruber, T., & Naudé, P. (2012) · Industrial Marketing Management · doi:10.1016/j.indmarman.2012.11.013 · Cited by 44
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Shuizheng, S., Hossin, M. A., Xiaohua, Y., & Hosain, S. (2021) · Sustainability · doi:10.3390/su13147765 · Cited by 42
“Capaldo [52] found that the frequent and continuous interaction and cooperation between the focal firm and the partners in the alliance portfolio are conducive to the two-way transfer and utilization of in-depth knowledge and tacit knowledge between partners through reducing mutual conflicts and opportunistic behavior.”
BackgroundTaylor, K. M., & Rosca, E. (2022) · Journal of Supply Chain Management · doi:10.1111/jscm.12295 · Cited by 41
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“…or might influence the innovation performance among which network characteristics (Ahuja, 2000; Becker & Dietz, 2004; Branzei & Thornhill, 2006; Capaldo, 2007; Chang, 2003; Deeds & Hill, 1996; Faems et al., 2005; Hillebrand & Biemans, 2004; Powell, Koput, & Smith-Doerr, 1996; Ritter &…”
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BackgroundIdentification of the Dynamic Capabilities Ecosystem—A Systems Thinking Perspective
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Environmental Innovations, Local Networks and InternationalizationPreprint
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Relational capabilities to leverage new knowledge
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“However, to capture value from networks, a combination of both strong ties and weak ties network relationships is required (Capaldo, 2007; Hansen, 1999; Reagans and McEvily, 2003; Obstfeld, 2005; Tiwana, 2008).”
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Lin, S.-Y. (2018) · European Journal of Innovation Management · doi:10.1108/ejim-09-2017-0115 · Cited by 37
“…is key to advancing social capital as the dynamics of interactions allow a focal firm to be exposed to a larger amount of relevant information and knowledge, and to share resources that can potentially facilitate knowledge creation and idea inspiration within the organisation (Capaldo, 2007).”
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“A study reported that the more heterogeneous the partners in an alliance are, the higher the firm’s innovative performance (Capaldo, 2007).”
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Anser, M. K., Yousaf, Z., Usman, M., Yousaf, S., Fatima, N., Hussain, H., & Waheed, J. (2020) · Management Decision · doi:10.1108/md-06-2019-0741 · Cited by 42
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“In both organizations, we collected data from multiple sources to exploit the synergetic effects of triangulation (Capaldo, 2007; Yin, 2003): we used focused individual interviews (primary method), comprehensive documentary information, and direct observations (Niehaves et al.”
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“…recent years, the relationship between R&D cooperation, knowledge transfer, and firm innovativeness has been the subject of numerous case studies (e.g. Dyer and Nobeoka 2000; Ciesa and Toletti 2004; Eraydin and Aematli-Köroglu 2005; Capaldo 2007), as well as several survey-based empirical studies.”
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“Strong dyadic interfirm ties can be the basis of a distinctive lead firm’s relational capability when it is integrated with a core of strong ties [85].”
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“Similarly, Nielsen and Nielsen Similarly, Capaldo (2007) suggested that network structures have greatly influenced the innovation capability of the lead-firm in an alliance network.”
BackgroundMitręga, M. (2023) · Industrial Marketing Management · doi:10.1016/j.indmarman.2023.03.001 · Cited by 44
Influence of Institutional Differences on Firm Innovation from International Alliances
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“The literature on networks and alliances argues access to diverse knowledge enriches the knowledge pool that firms can use to guide problem solving, in turn increasing the possibilities of finding novel solutions and enhancing innovation (e.g., Capaldo, 2007).”
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Capo, F., Brunetta, F., & Boccardelli, P. (2014) · International Journal of Engineering Business Management · doi:10.5772/59155 · Cited by 32
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“Accordingly, relationship strength matters beyond its direct effects (Capaldo 2007; Flight et al. 2008; Golicic & Mentzer 2006) and can be an essential contingent factor in shaping the way market orientation fit translated into firm performance.”
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“One of the main characteristics, which is also one of the advantages of a living lab, is ambidexterity referring to the organisation’s ability to have a dual function of exploration and exploitation [41, 42].”
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“However, such capabilities may be also devoted to the overall relationship portfolio management to diversify relationship benefits and risks (Capaldo, 2007; Lavie, 2007; Mitrega et al., 2012; Mitrega et al., 2017).”
Be creative but not so much. Decreasing benefits of creativity in clustered firms
Lora, V. D. C., Vallet‐Bellmunt, T., & Molina-Morales, F. X. (2015) · Entrepreneurship and Regional Development · doi:10.1080/08985626.2014.995722 · Cited by 31
The use of dynamic capabilities to boost innovation in a Brazilian Chemical Company
Froehlich, C., Bitencourt, C. C., & Bossle, M. B. (2017) · Revista de Administração · doi:10.1016/j.rausp.2017.08.007 · Cited by 31
Internal Social Network, Absorptive Capacity and Innovation: Evidence from New Ventures in China
Shan, W., Zhang, C., & Wang, J. (2018) · Sustainability · doi:10.3390/su10041094 · Cited by 33
Nazir, S., & Pinsonneault, A. (2021) · The Journal of Strategic Information Systems · doi:10.1016/j.jsis.2021.101654 · Cited by 39
The influence of R&D partnerships on innovation in manufacturing firms
Azadegan, A., Napshin, S. A., & Oke, A. (2013) · International Journal of Operations & Production Management · doi:10.1108/01443571311300755 · Cited by 31
“, 2002; Ettlie and Pavlou, 2006), the influence of network factors on innovation such as knowledge sharing (Sampson, 2007; Carayannis and Alexander, 2004), network structure (Schilling and Phelps, 2007; Capaldo, 2007) and governance mechanisms (Oke et al.”
BackgroundKnowledge mediation and overlapping in interfirm networks
Mariotti, F. (2011) · Journal of Knowledge Management · doi:10.1108/13673271111179262 · Cited by 34
“Although much of the above literature emphasizes the contradictory effects of sparse versus cohesive networks in relation to the search and recombination of knowledge, some other studies try to bring together these opposing views and suggest their complementary nature (Capaldo, 2007; Katila and Ahuja, 2002; Lavie and…”
BackgroundResultKnowledge brokering: spanning technological and network boundaries
Bergenholtz, C. (2011) · European Journal of Innovation Management · doi:10.1108/14601061111104706 · Cited by 31
“Other studies, however, argue for the potential advantage of weak ties even in the presence of innovation and complexity (Rowley et al., 2000; Capaldo, 2007; Harryson et al., 2008; Mors and Lynch, 2010).”
BackgroundPark, J. Y., Im, I., & Sung, C. (2017) · Knowledge Management Research & Practice · doi:10.1057/s41275-017-0071-9 · Cited by 31
“However, there is still an ongoing debate regarding which types of social networks are conducive to accessing valuable knowledge for enhancing performance (Capaldo 2007).”
BackgroundMurgia, G. (2018) · The Journal of Technology Transfer · doi:10.1007/s10961-018-9664-6 · Cited by 30
“In other cases, a persistent collaboration could induce the partners to diversify their collaboration strategy, so to avoid the risk of being locked in a scant number of relationships (Capaldo 2007) or to take full advantage of the proprietary knowledge leakages achieved through past collaborations (Hladik 1988).”
BackgroundInfluentialBragge, J., Kauppi, K., Ahola, T., Aminoff, A., Kaipia, R., & Tanskanen, K. (2019) · Journal of Business Research · doi:10.1016/j.jbusres.2018.12.050 · Cited by 30
“In addition to forming knowledge networks or learning alliances, questions on how to form a platform for knowledge search and transfer, and how the characteristics of the network actors facilitate cooperation have been studied (Bond, Houston, & Tang, 2008; Capaldo, 2007; Möller & Svahn, 2004”
BackgroundInfluentialImproving subsidiaries' innovation through knowledge inflows from headquarters and peer subsidiaries
Crespo, C. F., Lages, L. F., & Crespo, N. F. (2020) · Journal of International Management · doi:10.1016/j.intman.2020.100803 · Cited by 33
Crespo, C. F., Crespo, N. F., & Curado, C. (2021) · International Business Review · doi:10.1016/j.ibusrev.2021.101928 · Cited by 33
Increasing entrepreneurial ecosystem-level outcomes through orchestration: A proposed framework
Santos, J. B., Fernandes, A. R., de Oliveira, P. T., Moltene, L., & Partyka, R. B. (2023) · Technovation · doi:10.1016/j.technovation.2023.102873 · Cited by 30
Supply Chain Governance Mechanisms, Green Supply Chain Management, and Organizational Performance
Lee, S. M., & Choi, D. (2021) · Sustainability · doi:10.3390/su132313146 · Cited by 32
“In fact, the relational governance mechanism has been recognized as a major collaboration structure in product innovation [79].”
BackgroundAmpratwum, G., Osei‐Kyei, R., & Tam, V. W. Y. (2022) · International Journal of Critical Infrastructure Protection · doi:10.1016/j.ijcip.2022.100556 · Cited by 29
Towards a better understanding of Family Business Groups and their key dimensions
Piana, B. D., Vecchi, A., & Cacia, C. (2012) · Journal of Family Business Strategy · doi:10.1016/j.jfbs.2012.05.004 · Cited by 28
Project Complexity and Bonding Social Capital in Network Organizations
Moore, C. B., Payne, G. T., Autry, C. W., & Griffis, S. E. (2016) · Group & Organization Management · doi:10.1177/1059601116650556 · Cited by 29
“Furthermore, as suggested by Capaldo (2007), a dual network may be best, which is “a network architecture wherein a small core of strong ties is integrated with a larger periphery of weak ties” (p. 586).”
BackgroundSelf-organized innovation networks from the perspective of complex systems
Silva, A. L., & Guerrini, F. M. (2018) · Journal of Organizational Change Management · doi:10.1108/jocm-10-2016-0210 · Cited by 29
Unbundling dynamic capabilities for inter-organizational collaboration
Petricević, O., & Verbeke, A. C. (2019) · Cross Cultural & Strategic Management · doi:10.1108/ccsm-02-2019-0044 · Cited by 29
Developing Capabilities in Smart City Ecosystems: A multi-level approach
Gupta, A., Panagiotopoulos, P., & Bowen, F. (2023) · Organization Studies · doi:10.1177/01708406231164114 · Cited by 29
“These studies emphasise the relevance of relational capabilities as the ability of lead firms to derive value from knowledge exchange in networks (Capaldo, 2007; Martins, 2016).”
Metadata
- 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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