Abstract
AbstractMuch research has taken a structural perspective to examine how the R&D alliance network affects innovation. However, little is known about how the quality of the relationship affects firms’ innovation. In this study, I examine the interaction of network structure and the quality of the relationship and explore the impact on innovation. Using a combination of propensity score weighting and difference‐in‐difference estimation strategies to address endogeneity, I find that the quality of the relationship moderates the inverted U‐shaped relationship between network structure and innovation performance. In addition, I present evidence consistent with possible underlying mechanisms: both network structure and the quality of the relationship affect firms’ access to novel information and firms’ recombination capacity to influence innovation performance.
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