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
Becoming a public sector insider -A case study of Swedish digital healthcare start-ups´ entrepreneurial business formation processes
Bengtson, A., Morici, B. C., & Lindholm, C. K. (2022) · Industrial Marketing Management · doi:10.1016/j.indmarman.2022.06.013 · Cited by 10
Shareholder networks of university spinoff companies: firm development and regional characteristics
Prokop, D., & Kitagawa, F. (2022) · Studies in Higher Education · doi:10.1080/03075079.2022.2122662 · Cited by 10
“…its centrality and its aggregate constraint increases, essentially leading the USO towards a network lock-in characterised by the ﬁ rm ’ s increased unresponsiveness to market dynamics, limited innovation levels, and an intensi ﬁ ed reliance on a smaller network of stronger ties (Capaldo 2007).”
Background
Configuration and the capability of firms to innovate: a theoretical framework
Delbufalo, E., & Cerruti, C. (2012) · Cineca Institutional Research Information System (Tor Vergata University) · Cited by 10
Network Strategies Logic
Czakon, W. (2016) · Problemy Zarządzania - Management Issues · doi:10.7172/1644-9584.64.1 · Cited by 10
Innovation, absorptive capacity, environmental complexity, trust and cooperation within clusters.
Noni, I. D., Ganzaroli, A., Orsi, L., & Apa, R. (2013) · Institutional Research Information System (Università degli Studi di Brescia) · Cited by 10
Alliance portfolios and firm performance: the moderating role of environmental dynamics
Wang, X., & Bao, H. (2017) · Industrial Management & Data Systems · doi:10.1108/imds-09-2016-0351 · Cited by 10
Intensive WOM-behavior in the healthcare sector – the case of an Austrian hospital’s Facebook site
Martin, S., & Grüb, B. (2020) · International Review on Public and Nonprofit Marketing · doi:10.1007/s12208-020-00250-7 · Cited by 10
“Facebook users are connected to one another by either strong or weak ties (Capaldo 2007; Koroleva and Kane 2017; Johnson-Brown and Reingen 1987; Choi et al. 2017).”
Background
The building blocks of a relational capability – evidence from the banking industry
Czakon, W. (2009) · International Journal of Entrepreneurial Venturing · doi:10.1504/ijev.2009.029100 · Cited by 10
“Since research interest in relational capabilities is very recent, the theory building process is far from being achieved (Capaldo, 2007).”
Background
The Boundaries of Coopetition: A Case Study of Polish Companies Operating in the High-Tech Sector
Cygler, J., & Sroka, W. (2016) · Springer eBooks · doi:10.1007/978-3-319-28856-7_14 · Cited by 10
A Bibliometric Analysis of Supply Chain Management Research from the Perspective of Social Network
Ye, Y. (2019) · Science & Technology Libraries · doi:10.1080/0194262x.2019.1583625 · Cited by 10
Innovation du modele d’affaires en entreprises familiales : une approche par les capacites dynamiques
Ouiakoub, M., Bentahar, O., & Benzidia, S. (2024) · Vie & sciences de l entreprise · doi:10.3917/vse.219.0010 · Cited by 9
Leveraging social capital for digital transformation: The role of ambidexterity and familial orientation
Daskalopoulos, E. T., & Machek, O. (2024) · The Journal of High Technology Management Research · doi:10.1016/j.hitech.2024.100512 · Cited by 9
Market Innovation: Renewal of Traditional Industrial Networks
Nenonen, S., Möller, K., & Storbacka, K. (2016) · Springer eBooks · doi:10.1007/978-3-319-43380-6_4 · Cited by 9
“…driving strategies (Jaworski, Kohli & Sahay, 2000; Kumar, Scheer & Kotler, 2000; Varadarajan, 2010) and other non-technical systemic innovations (Edquist, 2011) as well as innovation in industrial networks (Lundgren, 1995; Möller, Rajala & Svahn, 2005; Dhanaraj & Parkhe, 2006; Capaldo, 2007).”
Background
Which collaborations allow firms to become gatekeepers? A longitudinal analysis of a large-scale collaboration network
Zacharias, N. A., Daldere, D., & Hinz, O. F. (2021) · European Management Journal · doi:10.1016/j.emj.2021.09.008 · Cited by 9
The Sustainability of Technological Innovation in China: From the Perspective of Network Relationships
Li, T., Zahari, A. I., & Sanusi, S. (2023) · Sustainability · doi:10.3390/su15054242 · Cited by 9
Managing the tradition and innovation paradox of the agribusiness industry: the impact of the network on operating, financial and social performance
Rey, A., Landi, G. C., Agliata, F., & Cardi, M. (2023) · Journal of Intellectual Capital · doi:10.1108/jic-04-2023-0087 · Cited by 9
The web mirrors value in the real world: comparing a firm’s valuation with its web network position
Qiaoyun, Y., & Gloor, P. A. (2015) · Computational and Mathematical Organization Theory · doi:10.1007/s10588-015-9189-6 · Cited by 9
“Capaldo (2007) empirically studied the network structure and innovation, and pointed out that the ability to integrate a large periphery of heterogeneous weak ties and a core of strong ties is a distinctive feature of a firm’s relational capability.”
Management Science, Logistics, and Operations Research
Wang, J. (2013) · Advances in logistics, operations, and management science book series · doi:10.4018/978-1-4666-4506-6 · Cited by 9
Structural holes, knowledge intermediaries and evolution of the triple helix system with reference to the hard disk drive industry in Thailand
Nakwa, K., & Zawdie, G. (2015) · International Journal of Technology Management and Sustainable Development · doi:10.1386/tmsd.14.1.29_1 · Cited by 9
“This happens because networking allows the convergence of diverse knowledge streams, which is necessary for the synthesis of ideas to culminate in innovation (Balthasar et al., 2000; Madill et al., 2004; Knorringa and van Staveren, 2006; Capaldo, 2007; Menzel and Fornahl, 2007).”
Background
Determinantes das colaborações inventivas nas redes brasileiras de copatenteamento inter-regional e internacional
Reis, R. C., Gonçalves, E., & Taveira, J. G. (2018) · Revista Brasileira de Inovação · doi:10.20396/rbi.v17i2.8649987 · Cited by 9
“However, strong links between agents may lead to a lower flow of new external knowledge, while weak links with agents outside the region may lead to new inventors and consequently new information (CAPALDO, 2007).”
Background
Relational capability and strategic alliance portfolio configuration
da Costa, P. R., Braga, S. S., Porto, G. S., & Martínez, M. P. (2018) · International Journal of Emerging Markets · doi:10.1108/ijoem-07-2016-0167 · Cited by 9
ABSORPTIVE CAPACITY: THE ROLE OF EXTERNAL KNOWLEDGE IN ORGANIZATIONAL STRATEGY
Rossetto, C. R., Carvalho, C. E., Ferreira, G. C., & Dominguez, C. (2019) · RAM. Revista de Administração Mackenzie · doi:10.1590/1678-6971/eramd190182 · Cited by 9
“In the track, intraorganizational learning and ACAP, with the works of Björkman, Stahl, and Vaara (2007), Capaldo (2007), Ferreras-Méndez, Fernández-Mesa, and Alegre (2016), Freeman, Hutchings, Lazaris, and Zyngier (2010), Tempel and Walgenbach (2007), and Zhou and Li (2012).”
Method
Focal enterprises' control and knowledge transfer risks in R&D networks
Guo, M., Yang, N., & Zhang, Y. (2020) · European Journal of Innovation Management · doi:10.1108/ejim-06-2019-0180 · Cited by 9
Networking Capability and Commercialization Performance: The Role of Network Structure
Maghsoudi-Ganjeh, Y., Khani, N., & Tabriz, A. A. (2021) · Journal of Business-to-Business Marketing · doi:10.1080/1051712x.2021.1893033 · Cited by 11
“Previous research has shown that networking capability improves the impact of business network structures on performance (Capaldo 2007; Gulati 1998; Mu 2014); therefore, it can be concluded that networking capability acts as a moderator in the relationship between network structure and performance.”
BackgroundInfluential
Influence of dependence on social capital and operational performance: a study of the textile and clothing industry
Celestini, J., Goecks, L. S., Lolli, F., & Sellitto, M. A. (2021) · Journal of Business and Industrial Marketing · doi:10.1108/jbim-04-2021-0215 · Cited by 9

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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