Knowledge flow across inter-firm networks: the influence of network resources, spatial proximity, and firm size

The objective of this paper is to analyze the characteristics and nature of the networks firms utilize to access knowledge and facilitate innovation. The paper draws on the notion of network resources, distinguishing two types: social capital – consisting of the social relations and networks held by individuals; and network capital – consisting of the strategic and calculative relations and networks held by firms. The methodological approach consists of a quantitative analysis of data from a survey of firms operating in knowledge-intensive sectors of activity. The key findings include: social capital investment is more prevalent among firms frequently interacting with actors from within their own region; social capital investment is related to the size of firms; firm size plays a role in knowledge network patterns; and network dynamism is an important source of innovation. Overall, firms investing more in the development of their inter-firm and other external knowledge networks enjoy higher levels of innovation. It is suggested that an over-reliance on social capital forms of network resource investment may hinder the capability of firms to manage their knowledge networks. It is concluded that the link between a dynamic inter-firm network environment and innovation provides an alternative thesis to that advocating the advantage of network stability

Rent Appropriation in Strategic Alliances: A Study of Technical Alliances in Pharmaceutical Industry

Many existing alliance studies have investigated how embedded relations create superior value for organizations. The role of network structure in rent appropriation or pie splitting, however, has been underexplored. We propose that favorable locations in interorganizational networks provide firms with superior opportunities for appropriating more economic benefits from alliances than their partners do. Specifically, we argue that partners’ asymmetric network positions will lead to unequal brokerage positions that promote disparate levels of information gathering, monitoring, and bargaining power, which lead to differing capacities to appropriate value. This in turn results in variations in market performance. We also propose this brokerage position exacerbates existing inequalities such as commercial capital; thus, available firm resources will moderate such network effects. Evidence is presented in the form of market response to technology alliance announcements from a set of pharmaceutical firms. In general, we find that firms within central network positions and those spanning structural holes have higher returns than their partners. In addition, we show that this relationship is contingent upon available firm resources

Social capital and knowledge in interorganizational networks: Their joint effect on innovation

This research analyzes the effects of interorganizational links on innovation using a comprehensive framework that integrates three research streams: social capital, knowledge based view and innovation. Using data from 143 R&D and/or marketing departments of innovative manufacturing and service companies, our results show that while knowledge complexity, per se, exerts a clear influence on the degree of innovations radicalness, the effect of knowledge tacitness appears only when it is combined with social capital. Similarly, the mere existence of strong cooperation agreements (relational social capital) does not guarantee more radical innovations. It is only when this social capital is combined with tacit knowledge that it really produces more innovative products. We also find that such radical products have an important impact on firm performance.: Innovation; radicalness; social capital; knowledge complexity; knowledge tacitness; firm performance

Collaboration Networks, Structural Holes, And Innovation: A Longitudinal Study

To assess the effects of a firm's network of relations on innovation, this paper elaborates a theoretical framework that relates three aspects of a firm's ego network-direct ties, indirect ties, and structural holes (disconnections between a firm's partners)-to the firm's subsequent innovation output. It posits that direct and indirect ties both have a positive impact on innovation but that the impact of indirect ties is moderated by the number of a firm's direct ties. Structural holes are proposed to have both positive and negative influences on subsequent innovation. Results from a longitudinal study of firms in the international chemicals industry indicate support for the predictions on direct and indirect ties, but in the interfirm collaboration network, increasing structural holes has a negative effect on innovation. Among the implications for interorganizational network theory is that the optimal structure of interfirm networks depends on the objectives of the network members.Managemen

A network-based view of regional growth

The need to better understand the mechanisms underlying regional growth patterns is widely recognised. This paper argues that regional growth is partly a function of the value created through inter-organisational flows of knowledge within and across regions. It is proposed that investment in calculative networks by organisations to access knowledge is a form of capital, termed network capital, which should be incorporated into regional growth models. The paper seeks to develop a framework to capture the value of network capital within these models based on the spatial configuration and the nature of the knowledge flowing through networks

Innovative coordination of agribusiness chains and networks

To facilitate scientifically grounded innovative forms of strategic network coordination, this paper integrates two major bodies of literature on competitive advantage. The two bodies of literature are the industry-oriented outside-in approach, and the competence-oriented inside-out approach, here homogenized along the dimensions of degrees of firm embeddedness, respectively, the broadness of shared resource bases. The elements detailed are interfirm relationships, resource bases, network governance instruments, coordination mechanisms, the impact of events on network structures, and the active mobilisation of actors and resource. Thereby, the paper is able to detail 5 generic types of business networks. Next, it relates 21 network governance instruments to type of partnerships (binding vs loosening), forms of interaction (cooperative vs opportunistic). The realized reduction of network complexity enhances conceptual transparency and increases the instrumental usage of this research for effective network coordination by businesses. An integrated case illustrates the usefulness of the various concepts and the coherency of the different elements

Regional networking as success factor in the transformation processes of maritime industry: Experiences and perspectives from Baltic Sea countries

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Alliances and industry analysis

Traditionally alliances have been left at of industry analysis. We have been focusing basically on the economic characteristics determining bargaining power on the relationships between the actors in a value system. The paper proposes a methodology to analyze industries from a very different perspective that incorporates alliances as one of the main drivers of industry structure.Alliances; industry structure; networks;