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Does knowledge network dual embeddedness promote inter-firm technological collaboration? A multilevel network analysis of the artificial intelligence industry

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  • Lin, Ping
  • Wu, Jiang

Abstract

Inter-firm technological collaboration is a crucial driver of innovation, with its formation deeply rooted in firms' knowledge structures. However, how a firm's embeddedness within a knowledge network shapes its external collaborative behavior remains underexplored. This study addresses this gap by examining the influence of knowledge network dual embeddedness, comprising both structural and relational dimensions, on the formation of new technological collaborations. At its core, structural embeddedness reflects a firm's structural position within the knowledge network and its ability to acquire diverse knowledge, while relational embeddedness reflects the strength of ties between a firm's knowledge elements. This framework is empirically tested through a multilevel network constructed from 42,715 co-patents in the Artificial Intelligence industry, sourced from the incoPat database. A Stochastic Actor-Oriented Model (SAOM) is employed to analyze the evolution of this network. The findings reveal that these dimensions exert distinct influences. At the macro level, the positional embeddedness of a firm's knowledge elements exhibits a modest but robust positive effect. In contrast, its meso-level junctional embeddedness, which captures knowledge brokerage, emerges as a significant positive driver of collaboration. Relational embeddedness paradoxically hinders the formation of new external partnerships. Furthermore, local structural embeddedness exhibits a paradoxical influence: loosely connected knowledge structures inhibit collaboration, whereas densely connected structures encourage it. By revealing the distinct effects of knowledge network dual embeddedness on inter-firm technological collaboration, this study offers a more nuanced understanding of the micro-foundations of collaboration and provides both theoretical and practical insights for optimizing firms' partnership.

Suggested Citation

  • Lin, Ping & Wu, Jiang, 2026. "Does knowledge network dual embeddedness promote inter-firm technological collaboration? A multilevel network analysis of the artificial intelligence industry," Technovation, Elsevier, vol. 153(C).
    • Handle: RePEc:eee:techno:v:153:y:2026:i:c:s0166497226000477
    DOI: 10.1016/j.technovation.2026.103512
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