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Network embeddedness and new product development in the biopharmaceutical industry: The moderating role of open innovation flow

Mazzola, E., Perrone, G. and Kamuriwo, D. S. (2015). Network embeddedness and new product development in the biopharmaceutical industry: The moderating role of open innovation flow. International Journal of Production Economics, 160, pp. 106-119. doi: 10.1016/j.ijpe.2014.10.002

Abstract

This paper explores the role of centrality and structural holes positions on the likelihood to develop new products and the moderating role of the open innovation flow, a measure of the net knowledge flow crossing the firm's boundaries, on the aforementioned relation. We argue that network positions provide the information content to the firm, whilst open innovation flow describes how the firm uses such content, thus the combination of these two concepts has a significant impact on new product development. We test the theoretical framework on a large sample of 544 public companies and data from 1758 agreements among 1890 bio-pharmaceutical firms through the period 2006-2010. Our results show that being centrally located in the network positively affects the new product development process, while having a structural holes position has no effect on the aforementioned performance. However, the interaction of the two network positions with the open innovation flow has a positive impact on the likelihood to develop new products.

Publication Type: Article
Additional Information: © 2015, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Publisher Keywords: Inter-firm networks; Open innovation; New product development
Subjects: H Social Sciences > HD Industries. Land use. Labor
Departments: Cass Business School > Management
URI: http://openaccess.city.ac.uk/id/eprint/16249
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