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

Abstract

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