Network power and firm innovation: the moderating roles of power distance and procedural justice

Abstract

Purpose This study aims to investigate the influence of network power on exploratory and exploitative innovation and examines the moderating effects of power distance and procedural justice on these untested relationships. Design/methodology/approach This study uses survey data collected from firms in China and explores the influential mechanisms of network power, power distance and procedural justice in firm innovation. Findings This study empirically shows that network power has an inverted U-shaped effect on exploratory and exploitative innovation. Power distance weakens the effect of network power on exploratory and exploitative innovation, and procedural justice enhances the effect of network power on exploratory and exploitative innovation. Research limitations/implications This study extends resource dependence theory and contributes to the literature on innovation management. Future studies should use different collection channels or research methods to provide more evidence for model promotion. In addition, the dynamic power game among network members and the roles of other mediators or moderators warrant further consideration. Practical implications Managers should exercise power strategies properly and ensure that their innovation income exceeds expenditures. Managers need to pay serious attention to power distance and procedural justice in the network and formulate suitable cooperation strategies based on actual conditions. Originality/value This study applies the resource dependence theory to investigate the influence of network power on exploratory and exploitative innovation. In addition, the moderating roles of power distance and procedural justice in the above relationships, which have rarely been discussed in previous studies, were tested.