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PurposeThe relationship between cooperative R&D network embeddedness and firm innovation resilience is understudied. This paper seeks to answer the questions of whether and how embedding in cooperative R&D networks improve digital firms’ innovation resilience.Design/methodology/approachBased upon social capital theory, this paper proposes a conceptual model with several hypotheses. The empirical analysis is based on a sample of 2,908 observations from 2005 to 2022. We measure firm innovation resilience by drawing on economic resilience and use LSM tests to assess the effect of cooperative R&D network position on innovation resilience.FindingsThe results indicate that cooperative R&D network centrality has a positive impact on firm innovation resilience and that the structural holes of the cooperative R&D network have an inverted U-shaped relationship with firm innovation resilience. Moreover, technological turbulence negatively moderates the relationship between centrality and firm innovation resilience while also steepening the inverted U-shaped relationship between structural holes and firm innovation resilience. Market turbulence positively moderates the relationship between centrality and firm innovation resilience. However, the moderating effect of market turbulence on the inverted U-shaped relationship between structural holes and firm innovation resilience is not significant.Research limitations/implicationsInnovators' knowledge needs, bounded rationality, interests, and even organizational environments change over time, thus prompting them to constantly seek new opportunities to exchange and integrate knowledge, meet new beneficial partners, maintain beneficial cooperation, or terminate unhelpful cooperation. The utility of the network structure has dynamic characteristics. Only by considering the dynamics of the network can research on the mechanism of network structure be more complete, accurate and convincing. Therefore, future research can pay more attention to the relationship between dynamic networks and firm innovation resilience.Practical implicationsFirms should actively embed themselves in the cooperative R&D network and occupy a beneficial network position. By joining the cooperative R&D network, firms can gain resource advantages and enhance their ability to resist external shocks and improve innovation resilience.Originality/valueThis research advances our understanding of the antecedents of firm innovation resilience through the lens of organizational cooperation and uncovers the boundary conditions under which network embeddedness influences innovation resilience, thereby further enriching the theoretical framework of innovation resilience.
PurposeThe relationship between cooperative R&D network embeddedness and firm innovation resilience is understudied. This paper seeks to answer the questions of whether and how embedding in cooperative R&D networks improve digital firms’ innovation resilience.Design/methodology/approachBased upon social capital theory, this paper proposes a conceptual model with several hypotheses. The empirical analysis is based on a sample of 2,908 observations from 2005 to 2022. We measure firm innovation resilience by drawing on economic resilience and use LSM tests to assess the effect of cooperative R&D network position on innovation resilience.FindingsThe results indicate that cooperative R&D network centrality has a positive impact on firm innovation resilience and that the structural holes of the cooperative R&D network have an inverted U-shaped relationship with firm innovation resilience. Moreover, technological turbulence negatively moderates the relationship between centrality and firm innovation resilience while also steepening the inverted U-shaped relationship between structural holes and firm innovation resilience. Market turbulence positively moderates the relationship between centrality and firm innovation resilience. However, the moderating effect of market turbulence on the inverted U-shaped relationship between structural holes and firm innovation resilience is not significant.Research limitations/implicationsInnovators' knowledge needs, bounded rationality, interests, and even organizational environments change over time, thus prompting them to constantly seek new opportunities to exchange and integrate knowledge, meet new beneficial partners, maintain beneficial cooperation, or terminate unhelpful cooperation. The utility of the network structure has dynamic characteristics. Only by considering the dynamics of the network can research on the mechanism of network structure be more complete, accurate and convincing. Therefore, future research can pay more attention to the relationship between dynamic networks and firm innovation resilience.Practical implicationsFirms should actively embed themselves in the cooperative R&D network and occupy a beneficial network position. By joining the cooperative R&D network, firms can gain resource advantages and enhance their ability to resist external shocks and improve innovation resilience.Originality/valueThis research advances our understanding of the antecedents of firm innovation resilience through the lens of organizational cooperation and uncovers the boundary conditions under which network embeddedness influences innovation resilience, thereby further enriching the theoretical framework of innovation resilience.
PurposePrior research from transaction costs economics argued that central firms perform better because they have superior access to information to discipline their alliance partners. Central firms may also, however, face higher costs and risks of unintentional learning and weaken their competence through structural inertia. We propose that these costs and risks are influenced by the learning capacities of the firms in the network and can explain different outcomes for focal firm performance.Design/methodology/approachTo test our predictions, we use instrumental variable–generalized method of moments estimation techniques on 15,517 firm-year observations from equity alliance portfolios in the global food industry across a 21-year window.FindingsWe find support for our predictions and show that the relationship between network degree centrality and firm performance is negatively influenced by partners’ learning capacity and positively influenced by focal firms’ learning capacity, while firms with low network degree centrality benefit less from their learning capacity.Research limitations/implicationsFuture developments in transaction cost economics may consider partner and focal firms’ learning capacity as moderators of the network degree centrality – firm performance relationship.Practical implicationsIn alliance decisions, managers must consider that the combination of high network degree centrality and partners’ learning capacity can lead to high costs, risks of unintentional learning, and structural inertia, all of which have negative consequences for performance. In concentrated industries where network positions are controlled by a few large firms, policymakers must acknowledge that firms may face substantial barriers to collaboration with learning-intensive firms.Originality/valueThis study is the first to develop and test a comprehensive transaction cost analysis of the central firm’s unintended knowledge flows and structural inertia in alliance networks. It is also the first to incorporate theoretically and empirically the hazards of complex and unintended information flows on the relationship of network degree centrality to performance in equity alliance portfolios.
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