Session 230

Ties, Networks, and Innovation

Track I

Date: Tuesday, October 9, 2012


Time: 08:00 – 09:15


Room: Club A

Session Chair:

  • Andrew Shipilov, INSEAD

Title: Geographic Diversity and Effective Knowledge Sourcing Through Alliances and M&As: Redundancy, Sequencing and Complexity


  • Rene Belderbos, University of Leuven
  • Boris Lokshin, Maastricht University
  • Jojo Jacob, Grenoble School of Management

Abstract: We examine the interrelated effects on technological performance of firms’ international technology alliances and technology-based cross-border mergers and acquisitions (M&As). Although the geographic diversity of knowledge sourcing holds the promise of increasing technological performance by facilitating knowledge recombination, overlaps between the geographic spread of M&As and alliances can leads to redundancy in accessing tacit local knowledge. Engaging in diverse knowledge sourcing strategies also increases complexity, which may reduce the overall effectiveness of the knowledge sourcing portfolio. Sequential strategies, with alliance activity followed by M&As, capitalize on local experience and mitigate complexity, with positive performance consequences. We find broad support for these hypotheses in a fixed effects panel data analysis of the technological performance of 165 leading firms in a broad range of industries during the period 2001-2007.

Title: Multiplex Ties in Business Group Innovation: Complements or Substitutes?


  • Shuping Li, National University of Singapore
  • Pasha Mahmood, IMD

Abstract: This study investigates the impact of multiplex ties in business groups on group innovation in emerging markets. Drawing on network theory and business group literature, we demonstrate that multiplex ties in a business group may serve as either complements or substitutes in coordinating social capital accumulation and incentive alignment in the group’s collective problem solving process. The net effect of tie multiplexity on group innovation depends on how the social capital accumulated is utilized, and to what extent incentive alignment is valued in group innovation.

Title: Relational Enhancement: How to Unlock the Value of Network Bridges


  • Daniel Levin, Rutgers University
  • Jorge Walter, George Washington University
  • Melissa Appleyard, Portland State University
  • Rob Cross, University of Virginia

Abstract: Through two complementary studies, we propose and test a novel approach to the conundrum that the network structure most likely to provide novel knowledge may be ill-suited for a successful knowledge transfer. In Study 1, we propose that tie strength can act as a substitute for the structural benefits of network closure, and so a bridging tie will yield more value when it is also a strong tie. Analyzing the employee network in a consulting firm, we find robust support for this “relational enhancement” effect. In Study 2, we examine the relational mechanism responsible for this effect. Analyzing the employee network in an engineering firm, we find that it is benevolence-based trust that allows knowledge workers to “unlock” the value embedded in their network-bridging ties.

Title: The Private and Common Benefits Spanning Structural Holes within the MNE Network


  • Lisa Gaerber, Stanford University
  • Torben Pedersen, Bocconi University
  • Shalini Rogbeer, WU-Vienna

Abstract: It is well established that spanning structural holes creates private benefits through innovation. However, the extent to which other network members profit from spanning structural holes remains unclear. This research considers how subunits that span structural holes within the MNE network reap private benefits in terms of innovation, as well as contribute to the common network benefits through knowledge outflows. We use a 3SLS model to elucidate the various individual and simultaneous links among brokerage, innovation and knowledge outflows. In this way, we decompose the ways in which brokerage simultaneously affects knowledge outflows and innovation to map out the private and common benefits of brokering within the MNE network.

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 274: Knowledge Foundations: A Conversation with Robert Grant about the Knowledge Based View
Sun: 09:30 – 10:45
Session 273: Big Data, Knowledge and Innovation
Sun: 11:15 – 12:30
Session 275: The Changing Nature of Innovation in Emerging Economies
Sun: 15:15 – 16:30
Session 225: Intellectual Property Rights
Session 229: Structure and Innovation
Mon: 08:00 – 09:15
Session 223: Individuals, Teams and Innovation
Session 242: R&D
Mon: 09:30 – 10:45
Session 140: Knowledge Management & Knowledge Structures: Who knows?
Session 226: Technology
Session 235: Learning
Mon: 13:30 – 14:45
Session 222: Integrating Knowledge about Knowledge Integration
Session 227: Knowledge Transfer and Replication
Mon: 16:30 – 17:45
Session 224: Absorptive Capacity
Session 236: Innovation and Performance
Tue: 08:00 – 09:15
Session 230: Ties, Networks, and Innovation
Session 237: Open Innovation
Tue: 11:00 – 12:15
Session 228: Exploration
Session 231: Alliance and Transfer
Tue: 14:15 – 15:30
Session 234: Incumbent Response to Foreign Entry and to Disruptive Innovation
Session 240: Capabilities
Tue: 15:45 – 17:00
Session 233: Structure and Transfer
Session 243: Entrepreneurs, Ventures, and Innovation
Tue: 17:30 – 18:45
Session 232: Innovation and Transfer
Session 239: Ambidexterity / Exploration and Exploitation
Session 244: Knowledge Management

Strategic Management Society