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Interfirm Collaboration Networks: The Impact of Large-Scale Network Structure on Firm Innovation

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Author Info

  • Melissa A. Schilling

    ()
    (Stern School of Business, New York University, 40 West Fourth Street, New York, New York 10012)

  • Corey C. Phelps

    ()
    (Department of Management and Organization, University of Washington, Box 353200, Seattle, Washington 98195)

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    Abstract

    The structure of alliance networks influences their potential for knowledge creation. Dense local clustering provides information transmission capacity in the network by fostering communication and cooperation. Nonredundant connections contract the distance between firms and give the network greater reach by tapping a wider range of knowledge resources. We propose that firms embedded in alliance networks that exhibit both high clustering and high reach (short average path lengths to a wide range of firms) will have greater innovative output than firms in networks that do not exhibit these characteristics. We find support for this proposition in a longitudinal study of the patent performance of 1,106 firms in 11 industry-level alliance networks.

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    File URL: http://dx.doi.org/10.1287/mnsc.1060.0624
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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 53 (2007)
    Issue (Month): 7 (July)
    Pages: 1113-1126

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    Handle: RePEc:inm:ormnsc:v:53:y:2007:i:7:p:1113-1126

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    Related research

    Keywords: alliances; networks; innovation; patents;

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    Cited by:
    1. LOPES BENTO Cindy & HOTTENROTT Hanna, 2012. "Quantity or Quality? Collaboration Strategies in Research and Development and Incentives to Patent," CEPS/INSTEAD Working Paper Series 2012-29, CEPS/INSTEAD.
    2. Joan Crespo & Raphaël Suire & Jérôme Vicente, 2013. "Network structural properties for cluster long run dynamics. Evidence from collaborative R&D networks in the European mobile phone industry," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201336, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    3. Beaudry, Catherine & Allaoui, Sedki, 2012. "Impact of public and private research funding on scientific production: The case of nanotechnology," Research Policy, Elsevier, vol. 41(9), pages 1589-1606.
    4. Waters, J, 2011. "Cost structures and the movement of the innovation locus: a derived network approach," MPRA Paper 33840, University Library of Munich, Germany.
    5. Ernest Miguélez & Rosina Moreno, 2013. "Skilled labour mobility, networks and knowledge creation in regions: a panel data approach," The Annals of Regional Science, Springer, vol. 51(1), pages 191-212, August.
    6. Tan, Justin & Shao, Yunfei & Li, Wan, 2013. "To be different, or to be the same? An exploratory study of isomorphism in the cluster," Journal of Business Venturing, Elsevier, vol. 28(1), pages 83-97.
    7. M. Schoonmaker & E. Carayannis & P. Rau, 2013. "The role of marketing activities in the fuzzy front end of innovation: a study of the biotech industry," The Journal of Technology Transfer, Springer, vol. 38(6), pages 850-872, December.
    8. Michał Bojanowski & Rense Corten & Bastian Westbrock, 2012. "The structure and dynamics of the global network of inter-firm R&D partnerships 1989–2002," The Journal of Technology Transfer, Springer, vol. 37(6), pages 967-987, December.
    9. T. Buchmann & D. Hain & Muhamed Kudic & M. Müller, 2014. "Exploring the Evolution of Innovation Networks in Science-driven and Scale-intensive Industries: New Evidence from a Stochastic Actor-based Approach," IWH Discussion Papers 1, Halle Institute for Economic Research.
    10. Rahul Basole & Jürgen Karla, 2011. "On the Evolution of Mobile Platform Ecosystem Structure and Strategy," Business & Information Systems Engineering, Springer, vol. 3(5), pages 313-322, October.
    11. Lincoln, James R. & Guillot, Didier, 2011. "Business Groups, Networks, And Embeddedness: Innovation And Implementation Alliances In Japanese Electronics, 1985-1998," Institute for Research on Labor and Employment, Working Paper Series qt35g695gn, Institute of Industrial Relations, UC Berkeley.
    12. Stuart McDonald & Mohamad Alghamdi & Bernard Pailthorpe, 2012. "The Emergence of a Small World in a Network of Research Joint Ventures," Discussion Papers Series 469, School of Economics, University of Queensland, Australia.
    13. Feng, Bo & Fan, Zhi-Ping & Li, Yanzhi, 2011. "A decision method for supplier selection in multi-service outsourcing," International Journal of Production Economics, Elsevier, vol. 132(2), pages 240-250, August.

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