This paper proposes that a mechanism through which a firm's location in the interorganizational network influences the firm's internal innovation activities is modifying the amount of information flowing within the firm. Exploring a firm's internal innovation activities, I hypothesized that structural centrality of an inventor in the intrafirm coinventing network is associated with her impact on her firm's innovation activities in an inverted-U-shape relation. I further hypothesized that this relationship is moderated by the firm's centrality and span of structural holes in the interfirm network. I found strong support for these hypotheses in a longitudinal study of eight large pharmaceutical firms. The findings in this paper, apart from having managerial implications, have implications for research on alliances, network studies, and innovation processes.
All Science Journal Classification (ASJC) codes
- Strategy and Management
- Organizational Behavior and Human Resource Management
- Management of Technology and Innovation