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Government-Supported Alliances, Knowledge Networks, and Exploratory Innovation

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Listed:
  • Xiaoxu Zhang

    (Tongji University)

  • Xiaolin Yue

    (Tongji University)

Abstract

Innovation in firms can be doubly influenced by government-supported alliances (GSAs) for innovation and non-government-supported knowledge networks, but we know little about why and how GSA participation affects firm exploratory innovation and its combined effects with structural holes in the knowledge network. Drawing on research on corporate political strategy, we argue that GSA participation presents a puzzle. On the one hand, a firm can reduce resource constraint for innovation. On the other hand, the firm’s innovation is subject to political constraint for non-market purposes. Moreover, from a relational pluralism perspective, GSA dependence and knowledge network can be either synergetic or antagonistic in affecting exploratory innovation. Using a sample of public firms in China with a difference-in-differences approach, we find evidence that GSA participation decreases a firm’s exploratory innovation, supporting the political constraint argument. However, the negative effect diminishes when firms have more structure holes in the knowledge networks, supporting the synergetic perspective. This study provides new insight on how firms combine political strategies and network strategies to improve exploratory innovation.

Suggested Citation

  • Xiaoxu Zhang & Xiaolin Yue, 2025. "Government-Supported Alliances, Knowledge Networks, and Exploratory Innovation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(5), pages 16502-16524, November.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:5:d:10.1007_s13132-024-02584-7
    DOI: 10.1007/s13132-024-02584-7
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    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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