The Dynamics of Structural Holes and Their Innovation Implications

網絡結構洞的演變及其對創新作用的研究

Student thesis: Doctoral Thesis

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Author(s)

  • Jinjuan ZANG

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Detail(s)

Awarding Institution
Supervisors/Advisors
Award date12 May 2016

Abstract

Existing research has demonstrated that firms can benefit from spanning structural holes, gaining either control benefits through playing one actor against another, or resource benefits acquired from diverse partners. However, little is known about the dynamics of this network structure and the conditions under which structural holes form and develop. Additionally, the innovation implications of structural holes are inconsistent. Inspired by these research gaps, this thesis analyzes the key drivers of structural hole dynamics and its innovation implications. To test this model, I used a panel of 177 U.S. biopharmaceutical focal firms and 2,586 alliances from the period spanning 1988 to 2006.
The first study investigates two dominant drivers of the development of structural holes from institutional theory and the resourced-based view, The results show that both status asymmetry and technology asymmetry between a focal firm and its partners exert positive impact on the development of the focal firm’s structural holes. Also, these two drivers are complementary with each other. These positive effects are stronger for those focal firms whose partners had similarly low status, while weaker for those focal firms whose partners had similarly high status. The technology similarity of a focal firm’s partners can attenuate the impact of these two forces on the development of structural holes. This study extends network theory by identifying two key drivers of structural holes and shedding new light on network genesis and dynamics. Furthermore, it also contributes to institutional theory and the resources-based view by integrating them into the network development process.
The second study investigates the influence of structural holes on exploratory and exploitative innovation. It determines that a structural hole position helps firms to develop exploratory innovation while negatively impacting exploitative innovation. This study offers more precise and comprehensive insight on how structural holes influence a firm’s innovation by differentiating exploratory innovation from exploitative innovation.
Overall, this thesis provides important implications for firms to arrange the structural hole dynamics and exploit the hole’s advantages into innovation.