Sliding Doors of Network Change: An Attention-Based Theory on The Evolution of Innovation Networks

Abstract

How and why do companies change their interorganizational networks over time? Research has traditionally focused on structural characteristics of ties to explore this evolutionary process. More recently, the focus has shifted to deliberate choices of network actors to change ties or maintain existing ones. In particular, research has explained that these choices are influenced by actors’ innovative performance, which determines how network ties evolve over time. In this paper, we deepen the understanding of this issue; specifically, we develop an attention–based theoretical model to explore how managers first focus on the innovative performance and then decide to pursue change or stasis in their network. We explain that having an internal focus of attention (focus on company’s own performance) or an external one (focus on partners’ performance) leads to different patterns of network change. In both instances, having a below-expectations innovative performance leads to change the network, but the specific pattern depends on the focus of attention. We argue that attention also influences the change of company practices, in combination with network change; in particular, it determines if managers have a big enough attention span to change both the network and the practices and how they focus on specific practices.