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Influence of firms’ network position on their innovation outcome in a mature industrial cluster

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Original languageEnglish
Title of host publicationAcademy of Management Proceedings 2019
Subtitle of host publicationAOM Boston 2019
EditorsGuclu Atinc
Place of PublicationUnited States of America
PublisherAcademy of Management
Publication statusPublished - 1 Aug 2019

Publication series

NameAcademy of Management Proceedings
ISSN (Print)0065-0668
ISSN (Electronic)2151-6561


Our study employs a social network perspective to investigate the influence of firms’ structural and relational embeddedness on their innovation outcome in a directed network in a mature industrial cluster. From the structural embeddedness perspective, we argue that a central position in an informal advice network does not bring equal innovation benefits to advice- seekers and advice-givers. Notably, in a mature cluster, we expect that the number of advice giving ties (popularity) positively influences the innovation outcome of firms, whereas the number of advice-seeking ties {activity) negatively affects the firms’ innovation. We also expect that the access to structural holes has a negative and significant impact on innovation outcome in a mature industrial cluster. From the relational embeddedness perspective, we investigate the effect of strong and weak ties on the innovation outcome of firms in a mature industrial cluster. We expect a positive relationship between firms’ innovation output and strong ties, and a negative relationship between weak ties and the innovation output of firms. We also test the mediating effect of absorptive capacity on the relationship between advice ties and innovation. Our findings suggest that activity has a significant negative impact on the innovation outcome of firms, while popularity shows a significant positive impact on the innovative outcome of firms. Strong ties show a positive and significant impact on innovation, while weak ties demonstrate a significant negative effect on innovation. Moreover absorptive capacity fully mediates the relationship between advice-giving ties and innovation. Our study has implications for cluster policymakers, as well as, research and development managers.

    Research areas

  • networks, clusters, innovation, embededness, absorptive capacity

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