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
The Dynamics of Innovative Industry Networks during Digitalization : A Case Study of the Game Software Industry in Korea
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“8 When knowledge is tacit and shared by close circles, strong ties have the strength of innovation [74], [75].”
Background
Cross-Domain Cooperation Mechanism for Servitization of Manufacturing Enterprises—A Value Appropriation Perspective Based on Cross-Chain Reorganization
Zhao, Z., Tian, H., & Xia, Q. (2025) · Journal of the Knowledge Economy · doi:10.1007/s13132-024-02514-7 · Cited by 2
“…in a manufacturing value chain are highly correlated and closely collaborative, making it easy for members to form a common understanding of social content and common knowledge, and the whole system network has a remarkable function to support the transfer of tacit knowledge (Capaldo, 2007).”
Value Creation in Alliance Portfolios
Al‐Laham, A., & Zock, F. (2012) · Emerald Group Publishing Limited eBooks · doi:10.1108/978-1-61735-756-520251003 · Cited by 2
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“Other empirical studies show that strong network embedding level exerts negative impact on corporate performance [2][4] .”
Background
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Li, R., Tao, Q., & Wang, Y. (2015) · International Conference on Logistics, Informatics and Service Sciences · doi:10.1109/liss.2015.7369615 · Cited by 2
“We use 3 indicators( contact frequency ,amount of time, emotional intensity ) to measure strength of ties by reference of Capaldo(2007)[19]; we measure network height in terms of vertical linkage (levels of government) and horizontal linkage(powers of office)adapted from Geng xin, Zhang…”
BackgroundMethod
The cultural value of Italian design for Chinese consumers: The role of communication strategy
Chiarvesio, M., Maria, E. D., & Tabacco, R. (2016) · Place Branding and Public Diplomacy · doi:10.1057/pb.2016.10 · Cited by 2
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Jian, Z., Wang, C., & Zhao, X. (2013) · Journal of Service Science and Management · doi:10.4236/jssm.2013.64029 · Cited by 2
“In the era of knowledge economy, the basis of value creation has gradually changed; the source of the enterprises to establish and maintain a competitive advantage has gradually focused its valuable, rare, inimitable, and non-substitutable knowledge resources, for the reason that many important innovative resources ar…”
Background
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“We note, for example, the work of Capaldo (2007, 2008) on furniture design networks in Italy.”
Background
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“Thus, we echo “a large periphery of heterogeneous ties and a core of strong ties dual network architectures” (Capaldo, 2007), “knowledge base is not a property that falls within its boundaries, but one that in part draws on its embeddedness in broader”
Background
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“Establishing a mix of strong and weak ties with alliance partners is therefore crucial (Ahuja 2000; Capaldo 2007; Padula 2008; Rost 2011).”
Background
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“Thus and while corroborating the statement by Capaldo (2007), it is shown the relevance of the encouragement to the organizational routines of sharing knowledge.”
Background
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“2010a) or sometimes as an external network in which the strengthening of ties over time creates a sort of ‘inner circle’ (Capaldo 2007).”
BackgroundMethodInfluential
Brand Joint Research Based on Geographical Indication Agricultural Products Network
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Background
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Pereira, C. M. D., Gonçalo, C. R., Ghedine, T., & Coelho, T. T. (2020) · Dialnet (Universidad de la Rioja) · Cited by 2
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“…2016); a mixture of strong and weak ties (forming star-shaped networks) show reinforcing properties for some Italian ﬁrms’ networks for innovation (Capaldo, 2007); and circular data-driven networks for innovation are emergent in the ﬁeld of circular economy (Antikainen & Valkokari, 2016)…”
Background
Innovation in Low-Income Countries
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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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