How does ego-network structure affect innovation within industrial clusters? The moderating effect of ego-network density

• Published in: Technology analysis & strategic management Vol. ahead-of-print; no. ahead-of-print; pp. 1 - 13
• Main Authors: Huang, Chin-Hua, Hsueh, Chao-Chih
• Format: Journal Article
• Language: English
• Published: Routledge 27.05.2023
• Subjects: ego-network density; Ego-network structure; exploitative innovation; exploratory innovation
• ISSN: 0953-7325; 1465-3990
• DOI: 10.1080/09537325.2023.2217458

Considerable uncertainty remains about the optimum position in the ego-network structure to pursue innovation. We investigate how ego-network density moderates the effect of ego-network structure on two types of innovation. We sample 92 firms in cultural and creative industries and analyse our data using hierarchical regression analysis. We find that ego-network density positively moderates the effect of betweenness centrality and structural holes on exploratory innovation but negatively moderates the effect of closeness and degree centrality on exploratory innovation. Ego-network density also positively moderates the effect of betweenness centrality on exploitative innovation. The results provide new insight into the role of ego-network structure in promoting or jeopardising exploitative and exploratory innovation.