Structural network embeddedness and firm incremental innovation capability: the moderating role of technology cluster

Abstract

Purpose This paper aims to propose the following questions: How do structural network embeddedness influence firms’ incremental innovation capability? Does technology cluster moderate the relationships between them? Design/methodology/approach In this empirical research, the authors collected a sample of patent data in the smartphone industry over the period of 2000-2018. Then, the authors examined the direct roles of structural network embeddedness on firms’ incremental innovation capability and the moderating role of technology cluster by using ordinary linear squares regression. Findings The empirical results show that occupying the central position positively affects firms’ incremental innovation capability, and clustering strengthens this linear relationship. Furthermore, bridging structural holes has an inverted U-shaped effect on incremental innovation capability, and clustering positively moderated this nonlinear relationship, while bridging ties across different clusters plays a negative moderation role in this relationship. Originality/value This empirical research provides new insights into whether and how firms can grasp the benefits of structural network embeddedness to conduct incremental innovations and the moderation effects of technology cluster contingencies. It further contributes to the structural network embeddedness–incremental innovation capability issue by extending its research context to the smartphone industry.