The effect of network tie position on a firm’s innovation performance

Abstract

This paper investigates the unexplored aspects of network effects considering the position of strong and weak ties, in particular, whether these are adjacent or non-adjacent to a focal firm in a triad network. To examine the effects of a network on a firm’s breakthrough innovation, we develop six configurations of strong and weak ties to explore a theoretical framework how such a network may affect a firm’s breakthrough innovation in terms of knowledge redundancy and relational risks. Further, we found that a firm’s absorptive capacity may significantly moderate such a relationship. Among the implications for network theory is whether a firm’s breakthrough innovation depends on the position and characteristics of networks in a triad relationship.