Social network strategies and innovative performance: formation and interplay of latent ties

Prior research found that re-activating latent ties (relationships lost for an extended period) can create substantial value. The present study examines previously unanswered research questions: how latent ties are formed and how their interplay with strong ties impacts individuals’ innovative performance. We applied hierarchical linear modelling to field data collected from R&D scientists and their managers in a large multinational high-tech firm in a longitudinal study. Our results suggest that a high level of network similarity and a lengthy social tie positively affect latent ties’ formation. The results also indicate that having additional reconnectable latent ties can increase individuals’ innovative performance. Yet, the latent ties become a lesser source of social capital for innovation when strong ties are abundant. Therefore, our findings offer insights into the tie formation process and when people’s latent relationships can be predicted to be beneficial for innovation.