The impact of dual network structure on firm performance: the moderating effect of innovation strategy

ABSTRACT

Firm innovation is embedded in a collaboration network among researchers and a knowledge network composed of knowledge elements; the two networks are decoupled. Guided by social network theory, this study puts forward the definition and the classification of firm dual network structure, probes into the influence of dual network structure on firm performance, and explores the alignment between innovation strategy and firm dual network structure. We conduct an empirical study of 183 listed companies in China from 2004 to 2018. It is found that the four types of dual network structure all have positive impacts on firm performance, and the impact of a collaboration network is slightly higher than that of a knowledge network. Besides, innovation strategy plays a positive moderating role in the relationship between dual network structure and firm performance. Our findings provide new ideas for firms to identify and optimise knowledge and collaboration network structures and match them with innovation strategy to improve performance.

KEYWORDS:

• Dual network structure
• ‌network centrality
• innovation strategy
• firm performance

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes on contributors

Yanhong Yao (PhD) is a Professor in Business School of Hunan University, China. Her research interests focus on knowledge and innovation management.

Han Gao is a master degree candidate in Business School of Hunan University, China. Her research interests focus on knowledge management and technological innovation.

Fangqi Sun received the master’s degree in business management from Hunan University, China. Her research interests focused on knowledge management and technological innovation.

Additional information

Funding

This study is supported by National Natural Science Foundation of China [grant number 71573078].