The Embeddedness of Networks: Institutions, Structural Holes, and Innovativeness in the Fuel Cell Industry

Abstract

P lentiful research suggests that embeddedness in alliance networks influences firms' innovativeness. This research, however, has mostly overlooked the fact that interorganizational ties are themselves embedded within larger institutional contexts that can shape the effects of networks on organizational outcomes. We address this gap in the literature by arguing that national institutions affect the extent to which specific network positions, such as brokerage, influence innovation. We explore this idea in the context of corporatism, which fosters an institutional logic of collaboration that influences the broker's ability to manage its partnerships and recombine the knowledge residing in its network as well as the extent of knowledge flows among network participants. We argue that differences in institutional logics lead brokerage positions to exert different effects on firm innovativeness. We propose that the firm spanning structural holes obtains the greatest innovation benefits when the firm (the broker) or its alliance partners are based in highly corporatist countries, or under certain combinations of broker and partner corporatism. We find support for these ideas through a longitudinal study of cross-border fuel cell technology alliance networks involving 109 firms from nine countries between 1981 and 2001.

International knowledge brokerage and returnees’ entrepreneurial decisions

“…Despite the advantages of international knowledge brokerage, transferring new knowledge from developed countries to developing countries is associated with uncertainty because recontextualizing knowledge originating from developed countries requires complementary assets (Krueger, 2000;Shane & Venkataraman, 2000;Simon, Houghton, & Aquino, 2000). Thus, the effectiveness of international knowledge transfer is contingent on institutional factors that may hinder or facilitate the acquisition of complementary assets (Batjargal, Hitt, Tsui, Arregle, Webb, & Miller, 2013;Caligiuri, 2014;Vasudeva, Zaheer, & Hernandez, 2013). Research has shown that a cooperative relationship with the local government in developing countries assists knowledge brokers in acquiring complementary resources and external legitimacy (Luo, 2001;Spencer, 2003).…”

Cooking under Fire: Managing Multilevel Tensions between Creativity and Innovation in Haute Cuisine

“…While, for instance, Vasudeva, Zaheer and Hernandez (2013) show that the innovativeness of firms is enhanced by their location in a coordinated market context (see also Lehrer 2000 andLange 2009), Casper, Lehrer and Soskice (1999) and Casper (2009) suggest that the institutional environment of British firms might be more conducive to innovation than the German one. These contrasting findings may be due to the fact that the specific impact of national institutions on the management of innovation tensions has not been sufficiently accounted for.…”

The impact of internal and external technology sourcing on innovation performance: a review and research agenda

“…Scholars have suggested that inter-organisational networks are critical for innovation performance (Vasudeva et al, 2013;Schilling andPhelps, 2007, Reagans andMcEvily, 2003), showing that a great number of direct ties positively impacts innovation performance (Owen-Smith and Powell, 2004;Tsai, 2001). However, the costs of managing too many relationships can outweigh the benefits of knowledge creation, resulting in a negative effect on innovation (Hansen, 2002).…”