Knowledge Creation in Inter-organizational Networks

Abstract

This study analyses the role of network embeddedness with regard to institutional distance, network closure and brokerage. We study how these three concepts affect knowledge creation in the Indian pharmaceutical industry. Our findings contribute to the literature in three ways. First, it enriches the discussion on network embeddedness by providing further support for the disadvantage of closure and the benefits of brokerage with regard to knowledge creation in a research context beyond traditional research settings like the U.S. or Europe. Second, it uniquely provides evidence for the positive contribution of a fit between network closure and institutional distance to a firm’s knowledge generation. Finally, we show how heterogeneity in terms of a high level institutional distance increases innovation output as does a higher level of brokerage. Yet, a high level of brokerage combined with a high level of institutional distance decreases knowledge generation while a high level of institutional distance and ...