Social capital, exploitative and exploratory innovations: The mediating roles of ego-network dynamics

Abstract

Previous research has considered researchers' social capital as a determinant of innovation. However, how individual social capital affects exploitative and exploratory innovations has not yet been sufficiently addressed. The purpose of this study is to demonstrate what and how social capital affects two types of innovations at the researcher level, by positing and testing ego-network dynamics as important mediators of the social capital–innovation process.We collect a panel patent dataset from a large US biotechnology company between 1976 and 2013, and conduct data analysis using Negative Binomial (NB) model and robust tests (e.g., Sobel test and 2SLS model). Results indicate that individual relational capital has a negative effect on exploratory innovation, but a positive effect on exploitative innovation. Structural capital positively affects both types of innovation. Cognitive capital has a positive impact on exploratory innovation but not exploitative innovation. The findings further show how ego-network stability and ego-network expansion mediate the relationships between social capital and two types of innovations. This paper contributes to exploitative and exploratory innovations theory by introducing social capital and network dynamics as important factors and mediators, and social network theory by exploring the antecedent and subsequence of ego-network dynamics.