Changes in knowledge coupling and innovation performance: the moderation effect of network cohesion

Abstract

Purpose Collaborative research and development have remained a pertinent mechanism for conducting technological innovations. With the lens of knowledge-based view (KBV), this study aims to examine the role of changes in knowledge couplings and network cohesion to elevate innovation performance. Design/methodology/approach Data analysis has been performed on 53,459 patents through regression analysis with random effects. These independent and joint patents are extracted from Derwent Innovation Database. Findings Findings explicate that change in external existing or existing and new knowledge couplings have inverted U-shaped effects on a firm’s innovation performance. Changes in internal existing or existing and new knowledge couplings have direct positive effects on firm’s innovation performance. The moderation effect of network cohesion flattens the inverted U-shaped effect of external new and existing knowledge coupling, whereas it has no significant effect on external existing knowledge coupling. Network cohesion further elevates the effects of internal knowledge couplings – existing or existing and new. Research limitations/implications This study theoretically contributes to KBV and innovation management literature by highlighting the scope of changes in internal and external knowledge couplings and subsequent output. Network cohesion flattens the curviness of changes in external new and existing knowledge couplings, which is a contribution to strategic management literature. Practical implications Organizations need to carefully manage changes in knowledge couplings and ensure their benefits (obtain new knowledge domain or new combination) outweigh liabilities (damages to organizational routines or increase in collaboration costs). Managers must consider four kinds of knowledge coupling changes along with developing network cohesion as an R&D strategy. Originality/value This study is one of its types to flatten the curve through network cohesion. This study divided the changes in knowledge coupling into four types and two dimensions; external existing and new and existing knowledge couplings and internal existing and new and existing knowledge couplings.