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The effects of geographic and network ties on exploitative and exploratory product innovation
Author(s) -
Ozer Muammer,
Zhang Wen
Publication year - 2015
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.2263
Subject(s) - cluster (spacecraft) , business , industrial organization , product (mathematics) , exploratory research , strong ties , exploratory analysis , product innovation , marketing , new product development , economic geography , interpersonal ties , economics , computer science , psychology , sociology , geometry , mathematics , data science , anthropology , social psychology , programming language
Addressing the inconsistent findings in the literature, we first distinguish the type of innovation and study the relationship of industrial clusters with exploitative and exploratory product innovation. Furthermore, we study how focal cluster firms' network ties with their suppliers and buyers in their clusters might moderate these relationships. Our empirical study showed that, while cluster membership enhanced firms' exploitative product innovation, it hindered their exploratory product innovation. Moreover, the results showed that focal cluster firms' network ties with their suppliers and buyers in their clusters strengthened the effects of cluster membership on exploitative product innovation. They also showed that focal cluster firms' network ties with their buyers but not suppliers in their clusters reduced the negative effects of cluster membership on exploratory product innovation . Copyright © 2014 John Wiley & Sons, Ltd.