How does ego-network structure affect innovation within industrial clusters? The moderating effect of ego-network density

Abstract

ABSTRACT Considerable uncertainty remains about the optimum position in the ego–network structure to pursue innovation. We investigate how ego-network density moderates the effect of ego-network structure on two types of innovation. We sample 92 firms in cultural and creative industries and analyse our data using hierarchical regression analysis. We find that ego-network density positively moderates the effect of betweenness centrality and structural holes on exploratory innovation but negatively moderates the effect of closeness and degree centrality on exploratory innovation. Ego-network density also positively moderates the effect of betweenness centrality on exploitative innovation. The results provide new insight into the role of ego-network structure in promoting or jeopardising exploitative and exploratory innovation.