The effect of external network competence and intrafirm networks on a firm’s innovation performance: The moderating influence of relational governance

Abstract

This study focuses on the effects of external network competence and intrafirm network on firm innovation performance, and the moderating role of intrafirm networks and relational governance on the relationship between external network competence and innovation performance. Our empirical results, based on sample data from 242 Chinese firms, reveal that external network competence and intrafirm network have a positive effect on innovation performance. Furthermore, we find that an intrafirm network positively moderates the relationship between external network competence and innovation performance, and that relational governance has an inverted U-shaped moderation effect on the relationship between external network competence and innovation performance. Implications of our results for theory and practice are discussed.