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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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InfluentialZhang, J., Wang, J., Winnink, J., & Jong, S. (2024) · The Journal of Technology Transfer · doi:10.1007/s10961-024-10173-8 · Cited by 11
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BackgroundIndependent Innovation or Secondary Innovation: The Moderating of Network Embedded Innovation
Cao, B., Han, Z., Liang, L., Liu, Y., Wang, J., & Xie, J. (2022) · Sustainability · doi:10.3390/su142214796 · Cited by 8
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Business format franchise in regional tourism development
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“Consequently, a thread of research focusing on the different levels of performance has been launched, and provided evidence that both the structures (Burt, 1992) and a distinctive capability to operate the network (Lorenzoni & Lipparini, 1999; Capaldo, 2007) shape firms’ collaborative performance.”
BackgroundBuilding interfirm leadership: A relational identity perspective
Hao, B., Feng, Y., & Ye, J. (2017) · European Management Journal · doi:10.1016/j.emj.2017.03.010 · Cited by 10
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“Similar to studies on network ties (Capaldo, 2007), results show a strong co-relationship between connective capacity and network database (d), as strong ties positively influenced the network database as well as connective capacity.”
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“While one of the most heated debates in the network literature addresses the advantages and drawbacks of strong versus weak ties (e.g., Burt, 1992; Capaldo, 2007; Coleman, 1990; Granovetter, 1973; Krackhardt, 1992; Sobrero and Roberts, 2001), the strategic implications of varying degrees of…”
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“Scholars have widely adopted these two dimensions (Al-Laham and Souitaris 2008; Andersson, Björkman, and Forsgren 2005; Capaldo 2007; Doménech and Davies 2011; Gilsing 2005), which exhibit high correlation with information communication, technology R&D, and knowledge innovation.”
BackgroundHow do CCIs contribute to regional innovation?
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Self-citationBolívar–Ramos, M. T., & la Hiz, D. I. L. (2025) · Small Business Economics · doi:10.1007/s11187-025-01016-3 · Cited by 6
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BackgroundExploring the impact of communication on innovation
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“3.3.4 Interactions We created three variables to examine the effect of network ties with long-term duration in their network as follows.”
BackgroundResultInfluentialNetwork exploration and exploitation in international entrepreneurship: an opportunity-based view
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“Rooted in Marshall’s theory of industrial clusters, it facilitates face-to-face interactions that support the exchange of tacit knowledge, reduce coordination costs, and enhance mutual trust (Dyer & Hatch, 2006; Capaldo, 2007; Beaudry & Schiffauerova, 2009 ).”
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“Therefore, we try to measure the resource similarity of companies by three core business relationships, i.e., customer relationships [7, 25], supplier relationships [26, 30] and alliance relationships [3, 15, 19].”
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“, 2014), and interorganisational relationships (e.g., Ahuja, 2000; Capaldo, 2007; Schilling and Phelps, 2007; Messeni Petruzzelli, 2011; Capaldo and Messeni Petruzzelli, 2014).”
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Cautela, C., & Zurlo, F. (2012) · International Journal of Entrepreneurship and Innovation Management · doi:10.1504/ijeim.2012.048085 · Cited by 5
“Some dynamic capabilities confirm extant findings in different studies (Capaldo, 2007; Dell’Era and Verganti, 2010), others emerge as real novelties.”
BackgroundInfluentialGuerra, J. M. M. (1970) · Dimensión Empresarial · doi:10.15665/rde.v12i1.73 · Cited by 5
DIFUSÃO DE INOVAÇÃO ADMINISTRATIVA E LOCALIZAÇÃO ESTRUTURAL EM REDE DE EMPRESAS
Gomes, A. D. O., & Guimarães, T. D. A. (2008) · RAI revista de administração e inovação · Cited by 5
Valenzuela‐Fernández, L., & Peñaloza-Briones, N. (2019) · IntechOpen eBooks · doi:10.5772/intechopen.86061 · Cited by 5
“An interorganizational cooperation network stands itself on the management of relationships between its members [23, 25, 31, 86], which are composed of individual and collective interests [8, 55, 94].”
Alliance portfolio classification. Which portfolio do you have?
Castiglioni, M., & González, J. L. G. (2020) · Baltic Journal of Management · doi:10.1108/bjm-05-2020-0174 · Cited by 5
Ortega, J. A. Á., Blanco, J. L. Y., Vara-Horna, A., & Cangahuala, G. (2020) · Sustainability · doi:10.3390/su12187779 · Cited by 5
“Similarly, Capaldo [39] suggests that compact networks could make it difficult to incorporate new knowledge, despite their wealth of social capital.”
BackgroundWhether and how managers' negotiable fate belief and knowledge search affect enterprise innovation
Zhang, S., Guo, C., & Wang, Y. (2021) · Cross Cultural & Strategic Management · doi:10.1108/ccsm-11-2020-0220 · Cited by 5
Knowledge exchange through the dynamic interplay of social capital dimensions in supply chains
Handoko, I., Bresnen, M., & Nugroho, Y. (2022) · Supply Chain Forum an International Journal · doi:10.1080/16258312.2022.2130005 · Cited by 5
“Most existing studies in supply chain contexts focus almost entirely upon the impact of structural connections and/or relational norms (Capaldo 2007; Kulangara, Jackson, and Prater 2016; Pant, Dutta, and Sarmah 2022).”
BackgroundCastaldi, L., Turi, C., Mazzoni, C., & Paoli, A. D. (2014) · Journal of Management & Governance · doi:10.1007/s10997-014-9291-z · Cited by 5
Luxury Firms in China: The Role of Design and Marketing Capabilities
Bettiol, M., Chiarvesio, M., Maria, E. D., & Tabacco, R. (2016) · Global Business Review · doi:10.1177/0972150916660392 · Cited by 5
Product development team formation: effects of organizational- and product-related factors
Songhori, M. J., Madjid Tavana, D., & Terano, T. (2019) · Computational and Mathematical Organization Theory · doi:10.1007/s10588-019-09302-8 · Cited by 5
“While empirical observations show that having both strong ties (that exist in communicative teams) and weak ties (that exist in diverse teams) are essential for creativity and innovation (Capaldo 2007; Tiwana 2008; Zhou et al.”
BackgroundThe role of relationships in start-up development
Mattsson, J., Helmersson, H., & Standing, C. (2018) · Journal of Strategic Marketing · doi:10.1080/0965254x.2018.1430057 · Cited by 5
“External relationships are important for accessing information and knowledge and can have a major impact during the start-up phase (Capaldo, 2007).”
BackgroundThe Relationship between Mutual TSI and Interfirm Contracts: The Moderating Effect of Strong Ties
Kim, M., Cho, H., & Ryu, S. (2020) · Journal of Business-to-Business Marketing · doi:10.1080/1051712x.2020.1713566 · Cited by 5
“Tie strength, which refers the strength of relationship among firms (Borgatti and Halgin 2011; Granovetter 1995), is an incrementally important characteristic that explains interfirm relationships (Capaldo 2007; Rindfleisch and Moorman 2001; Tellefsen and Thomas 2005).”
BackgroundMejía‐Morelos, J. H., Cisneros, L., Keen, C., & Sanchez‐Famoso, V. (2020) · European Journal of Family Business · doi:10.24310/ejfbejfb.v10i2.10006 · Cited by 5
“…among non-family members enhance the firm’s ability to identify and develop innovation opportunities that could not be identified or developed by relying only on the social capital of family members (Capaldo, 2007; Carrasco-Hernandez & Jimenez-Jimenez, 2013; Maurer & Ebers, 2006; Wise, 2014).”
BackgroundXiong, P. (2022) · Journal of Mathematics · doi:10.1155/2022/4932439 · Cited by 5
“Based on the feature process of [10], [11] adopts algorithms such as KNN, AdaBoost, and SVM to realize the device access authentication based on passive device fingerprint.”
RetractedValue-Based Partnering Structure Design for Networked Businesses: A Multi-Method Approach
Tapia, R. S., & Zarvić, N. (2008) · Journal of the Association for Information Systems · Cited by 5
Sroka, W. (2008) · Przegląd Organizacji · doi:10.33141/po.2008.06.04 · Cited by 5
“Capaldo, 2007 Strategiczne aktywa, które pozwalają firmom wiodącym mieć wpływ na generowanie zysków zarówno dla firm uczestniczących w sieci, jak i dla sieci jako całości 12.”
The role of social capital in building organizational resilience.
Jia, X. (2018) · UC Research Repository (University of Canterbury) · doi:10.26021/5475 · Cited by 7
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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