The Effects of Geographic and Network Ties on Exploitative and Exploratory Product Innovation

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

29 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)1105-1114
Journal / PublicationStrategic Management Journal
Volume36
Issue number7
Early online date19 Mar 2014
Publication statusPublished - Jul 2015

Abstract

Addressing the inconsistent findings in the literature, we first distinguish the type of innovation and study the relationship of industrial clusters with exploitative and exploratory product innovation. Furthermore, we study how focal cluster firms' network ties with their suppliers and buyers in their clusters might moderate these relationships. Our empirical study showed that, while cluster membership enhanced firms' exploitative product innovation, it hindered their exploratory product innovation. Moreover, the results showed that focal cluster firms' network ties with their suppliers and buyers in their clusters strengthened the effects of cluster membership on exploitative product innovation. They also showed that focal cluster firms' network ties with their buyers but not suppliers in their clusters reduced the negative effects of cluster membership on exploratory product innovation.

Research Area(s)

  • exploitative innovation, exploratory innovation, geographic proximity, industrial clusters, network ties