Learning and innovation in inter‐organizational network collaboration

Abstract

PurposeThis study sets out to examine the relationship between firms' learning orientation and network collaboration. The aim is to investigate how learning orientation enhances network collaboration and to discuss the role of the co‐innovation focus in the learning orientation‐network collaboration relationship.Design/methodology/approachBased on a partial least squares (PLS) structural equation modeling analysis of 90 small and medium‐sized industrial firms (SMEs), the study tests hypotheses regarding how two diverse learning orientations – i.e. exploration and exploitation – precede firms' network collaboration.FindingsThe analysis shows that learning drives firms' co‐innovation focus in terms of product and process co‐innovation. In particular, the explorative learning orientation is found to foster firms' network collaboration through product co‐innovation. Exploitative learning orientation promotes process innovations but discourages networking.Practical implicationsA key implication for business practitioners is the understanding that SMEs' explorative learning approaches drive their network collaboration. The development of novel product innovation calls for learning with partners in inter‐organizational networks, whereas process improvements rely on the firm's intra‐organizational learning.Originality/valueThe paper provides evidence of the connection between firms' learning orientation, co‐innovation focus, and networking. Thus, it contributes to the literature on organizational learning, innovation management, and business networks by explicating how learning drives a firm's networking through its co‐innovation focus.