Hostname: page-component-848d4c4894-xfwgj Total loading time: 0 Render date: 2024-06-29T06:48:18.415Z Has data issue: false hasContentIssue false

The influence of knowledge networks on a firm’s innovative performance

Published online by Cambridge University Press:  07 November 2016

Shih-Chieh Fang
Affiliation:
Department of Business Administration, National Cheng Kung University, Tainan City, Taiwan, ROC
Ming-Chao Wang*
Affiliation:
College of Management, Yuan Ze University, Taoyuan City, Taiwan, ROC
Pei-Chen Chen
Affiliation:
Department of Business Administration, National Cheng Kung University, Tainan City, Taiwan, ROC
*
Corresponding author: mcwangedu@gmail.com

Abstract

This paper explores the concept of knowledge networks in order to disclose how firms are able to increase innovative performance as a result of network structure and network content, which concern how firms connect with network partners (network structure), what the essence of exchange is for firms to acquire knowledge in the network (knowledge heterogeneity), and why firms need to cooperate with others (knowledge cognition). By using a sample of 144 high-technology firms in Taiwan’s science parks to test the hypotheses, the results of this study show that, while network structures do impact on a firm’s innovative performance, access to heterogeneous knowledge and increasing a firm’s knowledge in terms of defining and recognizing novel knowledge should be considered, since both play critical roles in facilitating innovative performance. These findings suggest that knowledge flow through a firm’s relationships must be understood in terms of network structure and content.

Type
Research Article
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2016 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adler, P. S., & Kwon, S. W. (2002). Social capital: Prospects for a new concept. Academy of Management Review, 27(1), 1740.Google Scholar
Ahuja, G. (2000). Collaboration networks, structural holes, and innovation: A longitudinal study. Administrative Science Quarterly, 45(3), 425455.Google Scholar
Anderson, J. C. (1987). An approach for confirmatory measurement and structural equation modeling of organizational properties. Management Science, 33(4), 525541.CrossRefGoogle Scholar
Argote, L., & Ingram, P. (2000). Knowledge transfer: A basis for competitive advantage for firms. Organizational Behavior and Human Decision Processes, 82(1), 150169.Google Scholar
Arikan, A. T. (2009). Interfirm knowledge exchanges and the knowledge creation capability of clusters. Academy of Management Review, 34(4), 658676.Google Scholar
Armstrong, J. S., & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal of Marketing Research, 14(3), 396402.Google Scholar
Association of Industries in Science Parks (2009). Science park business directory (HSP & CTSP & STSP). Hsinchu, Taiwan: AISP.Google Scholar
Beckman, C. M., & Haunschild, P. R. (2002). Network learning: The effects of partners’ heterogeneity of experience on corporate acquisitions. Administrative Science Quarterly, 47(1), 92124.Google Scholar
Bell, G. G., & Zaheer, A. (2007). Geography, networks, and knowledge flow. Organization Science, 18(6), 955972.Google Scholar
Belsley, D. A., Kuh, E., & Welsch, R. B. (1980). Regression diagnostics: Identifying influential data and sources of collinearity (Wiley series in probability and statistics). New York: Wiley.Google Scholar
Bierly, P. E., & Chakrabarti, A. K. (1996). Technological learning, strategic flexibility, and new product development in the pharmaceutical industry. IEEE Transactions on Engineering Management, 43(4), 368380.CrossRefGoogle Scholar
Bontis, N., Crossan, M. M., & Hulland, J. (2002). Managing an organizational learning system by aligning stocks and flows. Journal of Management Studies, 39(4), 437469.Google Scholar
Borgatti, S. P., & Cross, R. (2003). A relational view of information seeking and learning in social networks. Management Science, 49(4), 432445.Google Scholar
Borgatti, S. P., Everett, M. G., & Freeman, L. C. (2002). UCINET 6 for Windows: Software for social network analysis. Harvard, MA: Analytic Technologies.Google Scholar
Borgatti, S. P., Everett, M. G., & Johnson, J. C. (2013). Analyzing social networks. Los Angeles, CA: SAGE Publications Ltd.Google Scholar
Burt, R. S. (1992). Structural holes: The social structure of competition. Cambridge, MA: Harvard University Press.Google Scholar
Burt, R. S. (1997). The contingent value of social capital. Administrative Science Quarterly, 42(2), 339365.CrossRefGoogle Scholar
Byrne, B. M. (2010). Structural equation modelling with AMOS: Basic concepts, applications and programming. New York: Taylor and Francis.Google Scholar
Chen, M.-H., & Wang, M.-C. (2008). Social networks and a new venture’s innovative capability: The role of trust within entrepreneurial teams. R&D Management, 38(3), 253264.Google Scholar
Chen, S., Duan, Y., Edwards, J. S., & Lehaney, B. (2006). Toward understanding inter-organizational knowledge transfer needs in SMEs: Insight from a UK investigation. Journal of Knowledge Management, 10(3), 623.CrossRefGoogle Scholar
Chu, W.-W. (2009). Can Taiwan’s second movers upgrade via branding? Research Policy, 38(6), 10541065.Google Scholar
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128152.Google Scholar
Coleman, J. S. (1990). Foundations of social theory. Cambridge, MA: Belknap Press of Harvard University Press.Google Scholar
Cummings, J. L., & Teng, B.-S. (2003). Transferring R&D knowledge: The key factors affecting knowledge transfer success. Journal of Engineering and Technology Management, 20(1–2), 3968.Google Scholar
de Carolis, D. M., Litzky, B. E., & Eddleston, K. A. (2009). Why networks enhance the progress of new venture creation: The influence of social capital and cognition. Entrepreneurship Theory and Practice, 33(2), 527545.Google Scholar
Diamantopoulos, A., & Siguaw, J. A. (2006). Formative versus reflective indicators in organizational measure development: A comparison and empirical illustration. British Journal of Management, 17(4), 263282.Google Scholar
Diamantopoulos, A., & Winkelhofer, H. M. (2001). Index construction with formative indicators: An alternative to scale development. Journal of Marketing Research, 38(2), 269277.Google Scholar
Dillman, D. A. (2000). Mail and internet surveys: The tailored design method. New York: Wiley.Google Scholar
Dodgson, M., Mathews, J., Kastelle, T., & Hu, M.-C. (2008). The evolving nature of Taiwan’s national innovation system: The case of biotechnology innovation networks. Research Policy, 37(3), 430445.Google Scholar
Eisinga, R., te Grotenhuis, M., & Pelzer, B. (2013). The reliability of a two-item scale: Pearson, Cronbach, or Spearman-Brown? International Journal of Public Health, 58(4), 637642.Google Scholar
Fiet, J. O., Norton, W. I. Jr., & Clouse, v. G. H. (2007). Systematic search as a source of technical innovation: An empirical test. Journal of Engineering and Technology Management, 24(4), 329346.CrossRefGoogle Scholar
Fiet, J. O., Piskounov, A., & Patel, P. C. (2005). Still searching (systematically) for entrepreneurial discoveries. Small Business Economics, 25(5), 489504.Google Scholar
Freeman, L. C. (1979). Centrality in social networks: Conceptual clarification. Social Networks, 1(3), 215239.Google Scholar
Galvin, P., & Arndt, F. (2014). Strategic management: Building depth as well as breadth. Journal of Management & Organization, 20(2), 139147.Google Scholar
Gavetti, G., & Levinthal, D. (2000). Looking forward and looking backward: Cognitive and experiential search. Administrative Science Quarterly, 45(1), 113137.Google Scholar
Gomes-Casseres, B., Hagedoorn, J., & Jaffe, A. B. (2006). Do alliances promote knowledge flows? Journal of Financial Economics, 80(1), 533.Google Scholar
Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91(3), 481510.Google Scholar
Greve, H. R. (2007). Exploration and exploitation in product innovation. Industrial and Corporate Change, 16(5), 945975.Google Scholar
Gulati, R., Dialdin, D. A., & Wang, L. (2002). Organizational networks. In J. A. C. Baum (Ed.), The Blackwell companion to organizations (pp. 281303). Malden, MA: Blackwell Publishers.Google Scholar
Hair, J., Black, W., Babin, B., & Anderson, R. (2010). Multivariate data analysis: A global perspective (7th ed.). London: Pearson Education.Google Scholar
Hansen, M. T. (2002). Knowledge networks: Explaining effective knowledge sharing in multiunit companies. Organization Science, 13(3), 232248.Google Scholar
Hoang, H., & Antoncic, B. (2003). Network-based research in entrepreneurship: A critical review. Journal of Business Venturing, 18(2), 165187.Google Scholar
Huber, G. P. (1991). Organizational learning: The contributing processes and the literatures. Organization Science, 2(1), 88115.Google Scholar
Ibarra, H., Kilduff, M., & Tsai, W. (2005). Zooming in and out: Connecting individuals and collectivities at the frontiers of organizational network research. Organization Science, 16(4), 359371.Google Scholar
Ichijo, K. (2002). Knowledge exploitation and knowledge exploration: Two strategies for knowledge creating companies. In C. W. Choo, & N. Bontis (Eds.), The strategic management of intellectual capital and organizational knowledge (pp. 477483). New York: Oxford University Press.Google Scholar
Katila, R. (2002). New product search over time: Past ideas in their prime? Academy of Management Journal, 45(5), 9951010.Google Scholar
Katila, R., & Ahuja, G. (2002). Something old, something new: A longitudinal study of search behavior and new product introduction. Academy of Management Journal, 45(6), 11831194.Google Scholar
Kijkuit, B., & Van den Ende, J. (2007). The organizational life of an idea: Integrating social network, creativity and decision-making perspectives. Journal of Management Studies, 44(6), 860882.Google Scholar
Kilduff, M., & Brass, D. J. (2010). Organizational social network research: Core ideas and key debates. The Academy of Management Annals, 4(1), 317357.Google Scholar
Kogut, B. (2000). The network as knowledge: Generative rules and the emergence of structure. Strategic Management Journal, 21(3), 405425.Google Scholar
Kogut, B., & Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3(3), 383397.Google Scholar
Kogut, B., & Zander, U. (1996). What firms do? Coordination, identity, and learning. Organization Science, 7(5), 502518.CrossRefGoogle Scholar
Kooij, D. T. A. M., & Zacher, H. (2016). Why and when do learning goal orientation and attitude decrease with aging? The role of perceived remaining time and work centrality. Journal of Social Issues, 72(1), 146168.Google Scholar
Lechner, C., Frankenberger, K., & Floyd, S. W. (2010). Task contingencies in the curvilinear relationships between intergroup networks and initiative performance. Academy of Management Journal, 53(4), 865889.Google Scholar
Lee, Y.-M., & Yang, C. (2014). The relationships among network ties, organizational agility, and organizational performance: A study of the flat glass industry in Taiwan. Journal of Management & Organization, 20(2), 206226.CrossRefGoogle Scholar
Lo, Y.-J., & Hung, T. M. (2015). Inter-organizational relationships and firm performance: A study of the US equity underwriting market in the investment banking industry. Journal of Management & Organization, 21(5), 650674.Google Scholar
Lombardi, D., Danielson, R. W., & Young, N. (2016). A plausible connection: Models examining the relations between evaluation, plausibility, and the refutation text effect. Learning and Instruction, 44, 7486.Google Scholar
March, J. G. (1991). Exploration and exploitation in organizational learning. Organization Science, 2(1), 7187.Google Scholar
Marsden, P. V. (1990). Network data and measurement. Annual Review of Sociology, 16, 435463.Google Scholar
Mishra, D. P., Heide, J. B., & Cort, S. G. (1998). Information asymmetry and levels of agency relationships. Journal of Marketing Research, 35(3), 277295.Google Scholar
Mudambi, R., & Navarra, P. (2004). Is knowledge power? Knowledge flows, subsidiary power and rent-seeking within MNCs. Journal of International Business Studies, 35(5), 385406.Google Scholar
Murray, J. Y., & Fu, F. Q. (2016). Strategic guanxi orientation: How to manage distribution channels in China? Journal of International Management, 22(1), 116.Google Scholar
Muthusamy, S. K., & White, M. A. (2005). Learning and knowledge transfer in strategic alliances: A social exchange view. Organization Studies, 26(3), 415441.Google Scholar
Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2), 242266.Google Scholar
Nooteboom, B., van Haverbeke, W., Duysters, G., Gilsing, V., & Van de Oord, A. (2007). Optimal cognitive distance and absorptive capacity. Research Policy, 36(7), 10161034.Google Scholar
Nunnally, J. C. (1978). Psychometric Theory (2nd ed.). New York: McGraw-Hill.Google Scholar
O’Shannassy, T. (2015). Strategic management research in the Journal of Management & Organization: International in orientation with an Australasian edge. Journal of Management & Organization, 21(5), 551557.CrossRefGoogle Scholar
Owen-Smith, J., & Powell, W. W. (2004). Knowledge networks as channels and conduits: The effects of spillovers in the Boston biotechnology community. Organization Science, 15(1), 521.Google Scholar
Ozer, M., & Zhang, W. (2015). The effects of geographic and network ties on exploitative and exploratory product innovation. Strategic Management Journal, 36(7), 11051114.Google Scholar
Paruchuri, S. (2010). Intraorganizational networks, interorganizational networks, and the impact of central inventors: A longitudinal study of pharmaceutical firms. Organization Science, 21(1), 6380.Google Scholar
Patel, P. C., & Fiet, J. O. (2009). Systematic search and its relationship to firm founding. Entrepreneurship Theory and Practice, 33(2), 501526.Google Scholar
Phene, A., Fladmoe-Lindquist, K., & Marsh, L. (2006). Breakthrough innovations in the U.S. biotechnology industry: The effects of technological space and geographic origin. Strategic Management Journal, 27(4), 369388.CrossRefGoogle Scholar
Podolny, J. M. (2001). Networks as the pipes and prisms of the market. American Journal of Sociology, 107(1), 3360.Google Scholar
Polidoro, F. Jr., Ahuja, G., & Mitchell, W. (2011). When the social structure overshadows competitive incentives: The effects of network embeddedness on joint venture dissolution. Academy of Management Journal, 54(1), 203223.Google Scholar
Reagans, R., & McEvily, B. (2003). Network structure and knowledge transfer: The effects of cohesion and range. Administrative Science Quarterly, 48(2), 240267.Google Scholar
Reagans, R., & Zuckerman, E. W. (2001). Networks, diversity, and productivity: The social capital of corporate R&D teams. Organization Science, 12(4), 502517.Google Scholar
Rindfleisch, A., & Moorman, C. (2001). The acquisition and utilization of information in new product alliances: A strength-of-ties perspective. Journal of Marketing, 65(2), 118.CrossRefGoogle Scholar
Rodan, S., & Galunic, C. (2004). More than network structure: How knowledge heterogeneity influences managerial performance and innovativeness. Strategic Management Journal, 25(6), 541562.Google Scholar
Salman, N., & Saives, A.-L. (2005). Indirect networks: An intangible resource for biotechnology innovation. R&D Management, 35(2), 203215.Google Scholar
Sammarra, A., & Biggiero, L. (2008). Heterogeneity and specificity of inter-firm knowledge flows in innovation networks. Journal of Management Studies, 45(4), 800829.Google Scholar
Scott, J. (2013). Social network analysis. Los Angeles, CA: SAGE Publications Ltd.Google Scholar
Shenkar, O., & Li, J. (1999). Knowledge search in international cooperative ventures. Organization Science, 10(2), 134143.Google Scholar
Shipilov, A. V. (2009). Firm scope experience, historic multimarket contact with partners, centrality, and the relationship between structural holes and performance. Organization Science, 20(1), 85106.Google Scholar
Shipilov, A. V., Greve, H. R., & Rowley, T. J. (2010). When do interlocks matter? Institutional logics and the diffusion of multiple corporate governance practices. Academy of Management Journal, 53(4), 846864.Google Scholar
Simonin, B. L. (1999). Ambiguity and the process of knowledge transfer in strategic alliances. Strategic Management Journal, 20(7), 595623.Google Scholar
Spencer, J. W. (2003). Firms’ knowledge-sharing strategies in the global innovation system: Empirical evidence from the flat panel display industry. Strategic Management Journal, 24(3), 217233.Google Scholar
Stam, W., & Elfring, T. (2008). Entrepreneurial orientation and new venture performance: The moderating role of intra- and extraindustry social capital. Academy of Management Journal, 51(1), 97111.Google Scholar
Stuart, T. E. (2000). Interorganizational alliances and the performance of firms: A study of growth and innovation rates in a high-technology industry. Strategic Management Journal, 21(8), 791811.3.0.CO;2-K>CrossRefGoogle Scholar
Stuart, T. E., & Podolny, J. M. (1996). Local search and the evolution of technological capabilities. Strategic Management Journal, 17(S1), 2138.Google Scholar
Tan, J. (2006). Growth of industry clusters and innovation: Lessons from Beijing Zhongguancun Science Park. Journal of Business Venturing, 21(6), 827850.Google Scholar
Tiwana, A. (2008). Do bridging ties complement strong ties? An empirical examination of alliance ambidexterity. Strategic Management Journal, 29(3), 251272.CrossRefGoogle Scholar
Tsai, W., & Ghoshal, S. (1998). Social capital and value creation: The role of intrafirm networks. Academy of Management Journal, 41(4), 464476.Google Scholar
Uzzi, B. (1996). The sources and consequences of embeddedness for the economic performance of organizations: The network effect. American Sociological Review, 61(4), 674698.Google Scholar
Wang, C., Rodan, S., Fruin, M., & Xu, X. (2014). Knowledge networks, collaboration networks, and exploratory innovation. Academy of Management Journal, 57(2), 484514.Google Scholar
Wasserman, S., & Faust, K. (1994). Social network analysis: Methods and applications. Cambridge, UK: Cambridge University Press.Google Scholar
Williams, C., & Lee, S. H. (2009). Resource allocations, knowledge network characteristics and entrepreneurial orientation of multinational corporations. Research Policy, 38(8), 13761387.Google Scholar
Williams, L. J., Vandenberg, R. J., & Edwards, J. R. (2009). 12 Structural equation modelling in management research: A guide for improved analysis. The Academy of Management Annals, 3(1), 543604.Google Scholar
Wincent, J., Anokhin, S., Ortqvist, D., & Autio, E. (2010). Quality meets structure: Generalized reciprocity and firm-level advantage in strategic networks. Journal of Management Studies, 47(4), 597624.Google Scholar
Wu, F., & Cavusgil, T. (2006). Organizational learning, commitment, and joint value creation in interfirm relationships. Journal of Business Research, 59(1), 8189.Google Scholar
Wu, J., & Shanley, M. T. (2009). Knowledge stock, exploration, and innovation: Research on the United States electromedical device industry. Journal of Business Research, 62(4), 474483.Google Scholar
Wu, L.-Y., Wang, C.-J., Chen, C.-P., & Pan, L.-Y. (2008). Internal resources, external network, and competitiveness during the growth stage: A study of Taiwanese high-tech ventures. Entrepreneurship Theory and Practice, 32(3), 529549.Google Scholar
Yang, C.-H., Motohashi, K., & Chen, J.-R. (2009). Are new technology-based firms located on science parks really more innovative? Evidence from Taiwan. Research Policy, 38(1), 7785.Google Scholar
Yang, H., Sun, S. L., Lin, Z., & Peng, M. W. (2011). Behind M&As in China and the United States: Networks, learning, and institutions. Asia Pacific Journal of Management, 28(2), 239255.Google Scholar
Yli-Renko, H., Autio, E., & Sapienza, H. J. (2001). Social capital, knowledge acquisition, and knowledge exploitation in young technology-based firms. Strategic Management Journal, 22(6–7), 587613.Google Scholar
Zaheer, A., & Bell, G. G. (2005). Benefiting from network position: Firm capabilities, structural holes, and performance. Strategic Management Journal, 26(9), 809825.Google Scholar
Zheng, Y., Liu, J., & George, G. (2010). The dynamic impact of innovative capability and inter-firm network on firm valuation: A longitudinal study of biotechnology start-ups. Journal of Business Venturing, 25(6), 593609.Google Scholar