Effects Of Second Hand Brokerage On Business Model Innovation And Network Evolution

Abstract

Research on social network theory suggests that a firm can use its structural network position to gain access to external resources that help develop innovation. Although most of the research focuses on main effects of network brokerage in a cooperative network, we further explore the effect of“second- hand brokerage” in a coopetition network. In a longitudinal study, we show that leveraging direct contacts’ brokerage in a coopetition network contributes to business model innovation. And, firms’ development of innovative business models helps them to enrich their competitive position and to increase their centrality in the network. This research extends our knowledge of social network theory and competitive dynamics research, and demonstrates the unique value provided by coopetition.