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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Background
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Sánchez, C. M., & Schmid, A. S. (2013) · South Asian Journal of Global Business Research · doi:10.1108/20454451311303293 · Cited by 20
“Capaldo (2007) calls this “strong ties,” and suggests that among trusted partners in a project venture, the desire to protect reputations discourages partners from behaving opportunistically.”
BackgroundInfluential
The joint evolution of alliance networks and technology: A survey of the empirical literature
Stolwijk, C. C. M., Ortt, R., & den Hartigh, E. (2012) · Technological Forecasting and Social Change · doi:10.1016/j.techfore.2012.11.012 · Cited by 20
Guanxi: competitive advantage or necessary evil?
Wang, C., & Chen, K.-L. (2018) · Review of International Business and Strategy · doi:10.1108/ribs-07-2017-0058 · Cited by 20
Formalized business networks in SMEs and structural relations for their governance
Cisi, M., & Sansalvadore, F. (2019) · Journal of Small Business & Entrepreneurship · doi:10.1080/08276331.2019.1691317 · Cited by 19
“Networks between SMEs have been studied in great depth (Bougrain and Haudeville 2002; Hanna and Walsh 2002; Pittaway et al. 2004; Capaldo 2007; Gulati 2007; Huggins and Johnston 2009; Clifton et al. 2010; Colombo et al. 2012; Gronum, Verreynne, and Kastelle 2012; Park and Zhou 2005), also as a…”
Background
Faraway, Not So Close: The Conditions That Hindered Knowledge Sharing and Open Innovation in an Online Business Social Network
Marchegiani, L., Brunetta, F., & Annosi, M. C. (2020) · IEEE Transactions on Engineering Management · doi:10.1109/tem.2020.2983369 · Cited by 19
Capabilities and skills to orchestrate innovation networks
Toigo, T., Wegner, D., da Silva, S. B., & Zarpelon, F. (2021) · Innovation & Management Review · doi:10.1108/inmr-10-2019-0126 · Cited by 19
CHALLENGES AND OPPORTUNITIES IN INNOVATIVE FIRMS' NETWORK DEVELOPMENT
Öberg, C., & Grundström, C. (2009) · International Journal of Innovation Management · doi:10.1142/s1363919609002431 · Cited by 19
Examining the relationship between social capital and knowledge usage in the nonprofit industry
Miković, R., Petrović, D. Č., Mihic, M. M., Obradovic, V. L., & Todorovic, M. L. (2019) · Knowledge Management Research & Practice · doi:10.1080/14778238.2019.1638740 · Cited by 19
“…prevents opportunism and increases expectations from cooperation (Uzzi & Lancaster, 2003), as well as the willingness of an individual to invest in knowledge transfer, reception usage (Kachra & White, 2008), to adopt innovations (Kraatz, 1998) and create organisational knowledge (Capaldo, 2007).”
Background
Valuation effects of alliance portfolio expansion speed and strength: Evidence from high-tech firms
Shukla, D. M., Mital, A., Qureshi, I., & Wang, T. T. (2019) · Journal of Business Research · doi:10.1016/j.jbusres.2019.09.032 · Cited by 19
Levels of Multiplexity in Entrepreneur’s Networks: Implications for Dynamism and Value Creation
Bliemel, M., McCarthy, I. P., & Maine, E. (2015) · Entrepreneurship Research Journal · doi:10.1515/erj-2015-0001 · Cited by 20
“While multiplexity has been operationalized as tie strength (Rowley, Behrens, and Krackhardt 2000), tie strength remains a crude proxy for the multidimensional nature of content flows (Capaldo 2007; Bliemel and Maine 2008; Shipilov 2012).”
Background
What matters for interorganizational connectedness? Locating the drivers of multiplex corporate networks
Novoselova, O. A. (2021) · Strategic Management Journal · doi:10.1002/smj.3343 · Cited by 18
How and when does relational governance impact lead-time performance of developing-country suppliers in global value chains?
Islam, M. T., Chadee, D. D., & Polonsky, M. J. (2021) · Supply Chain Management An International Journal · doi:10.1108/scm-05-2021-0255 · Cited by 18
Dependence and resource commitment as antecedents of supply chain integration
Fernández, J. T. (2022) · Business Process Management Journal · doi:10.1108/bpmj-09-2021-0602 · Cited by 18
How enterprise interactions in innovation networks affect technological innovation performance: The role of technological innovation capacity and absorptive capacity
Fan, M., Huang, W., & Xiong, S. (2023) · PLoS ONE · doi:10.1371/journal.pone.0282540 · Cited by 18
“Second, affective interactions create an interactive atmosphere that enables access to the knowledge and technical information needed for innovation and increases the possibility of improving technological R&D capabilities [39].”
Background
Why and how do suppliers develop environmental management capabilities in response to buyer-led development initiatives?
Qiao, J., Li, S., & Capaldo, A. (2024) · Supply Chain Management An International Journal · doi:10.1108/scm-08-2023-0395 · Cited by 20
Self-citation
IMP studies: A bridge between tradition and innovation
Cantù, C. L., Corsaro, D., Fiocca, R., & Tunisini, A. (2013) · Industrial Marketing Management · doi:10.1016/j.indmarman.2013.07.021 · Cited by 18
Strategic Technology Partnering Capabilities: A Systematic Review of the Empirical Evidence Over Two Decades
Kilubi, I. (2016) · Journal of strategy and management · doi:10.1108/jsma-01-2015-0008 · Cited by 20
Developing radically new meanings through the collaboration with radical circles
Altuna, N., Dell’Era, C., Landoni, P., & Verganti, R. (2017) · European Journal of Innovation Management · doi:10.1108/ejim-06-2015-0045 · Cited by 18
Antecedents of SME embeddedness in inter-organizational networks: Evidence from China's aerospace industry
Wang, Y., Assche, A. V., & Turkina, E. (2017) · Journal of Small Business & Entrepreneurship · doi:10.1080/08276331.2017.1391368 · Cited by 18
“…at entry stage or have a high capacity to frequently interact with other firms, less experienced young SMEs tend to be positioned at the periphery in inter-organizational networks (Capaldo 2007), and are less likely to be proximate to lead firms, which is signaled by low eigenvector centrality.”
Background
A relational lifecycle model of the emergence of network capability in new ventures
McGrath, H., O’Toole, T., Marino, L., & Sutton‐Brady, C. (2017) · International Small Business Journal Researching Entrepreneurship · doi:10.1177/0266242617738571 · Cited by 18
“…to a significant yet under researched area, capability emergence in new ventures (Autio et al., 2011; Zahra et al., 2006) and, more specifically, modelling the microdynamics and phases of the evolution of network capability (Capaldo, 2007), an interpretive action research approach was employed.”
Institutional legitimacy of non-profit innovation facilitators: Strategic postures in regulated environments
Corsini, F., Rizzi, F., & Frey, M. (2018) · Technology in Society · doi:10.1016/j.techsoc.2018.01.002 · Cited by 16
The internal mechanisms of entrepreneur´s social capital: A multi-network analysis
Hernández, C. E., Izquierdo, C. C., & Cillán, J. G. (2019) · BRQ Business Research Quarterly · doi:10.1016/j.brq.2018.12.001 · Cited by 18
“In fact, these business networks are usually oriented towards acquiring business-related resources (Casson and Della Giusta, 2007).”
Background
Prevention of occupational injuries and accidents: A social capital perspective
Hafeez, H., Abdullah, M. I., Riaz, A., & Shafique, I. (2020) · Nursing Inquiry · doi:10.1111/nin.12354 · Cited by 18
Understanding interorganizational network evolution
Harini, K. N., & Thomas, M. T. (2020) · Journal of Business and Industrial Marketing · doi:10.1108/jbim-05-2019-0263 · Cited by 18
The value for innovation of inter-firm networks and forming alliances: A meta-analytic model of indirect effects
Salazar, A. J., González, J. M. H., Duysters, G. M., Sabidussi, A., & Allen, M. R. (2016) · Computers in Human Behavior · doi:10.1016/j.chb.2016.05.073 · Cited by 21
A Behavioural Theory of Economic Development
Huggins, R., & Thompson, P. (2021) · doi:10.1093/oso/9780198832348.001.0001 · Cited by 19
Business failures in institutionally weak environments: An examination of Virgin Atlantic’s failed adventure in sub-saharan africa
Amankwah‐Amoah, J., Debrah, Y. A., & Acquaah, M. (2023) · International Business Review · doi:10.1016/j.ibusrev.2023.102146 · Cited by 17
Old flames never die – the role of binding social ties for corporate entrepreneurship in family firms
Weimann, V., Gerken, M., & Hülsbeck, M. (2021) · International Entrepreneurship and Management Journal · doi:10.1007/s11365-021-00749-3 · Cited by 17
“Also, procedures and workflow are usually long established, which can leave firms with long-term employees resulting from strong social ties with more prone to rigidity (Capaldo, 2007).”
BackgroundResultInfluential
Structural Pathologies in Inter-organizational Networks and their Consequences
Cygler, J., & Sroka, W. (2014) · Procedia - Social and Behavioral Sciences · doi:10.1016/j.sbspro.2013.12.847 · Cited by 17
Technological proximity and the intensity of collaboration along the innovation funnel: direct and joint effects on innovative performance
Anzola, P., Sáez, C. B., Marco, T. G., & Lazzarotti, V. (2019) · Journal of Knowledge Management · doi:10.1108/jkm-10-2018-0640 · Cited by 17
Integrated co-creation process with multiple stakeholders in innovation networks
Takahashi, S., & Takahashi, V. P. (2021) · Innovation & Management Review · doi:10.1108/inmr-10-2020-0142 · Cited by 16

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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