Borrowing networks for innovation: The role of attention allocation in secondhand brokerage

Abstract

AbstractResearch SummaryThis study investigates how people connecting with brokers who span structural holes in a firm's communication networks can enhance their innovative performance. Through sociometric data from a large software company, we observe that individuals who pay attention to information from brokers achieve higher innovative performance compared with those who ignore such information. The advantage of paying attention to brokers' information is more pronounced when people operate in highly constrained networks. Yet, our post hoc analysis reveals that people typically allocate less attention to information from brokers than from local colleagues—they systematically do the opposite of what they should do for innovative performance. Our findings regarding the role of attention for secondhand brokerage make significant contributions to studies of networks and innovation for behavioral strategy.Managerial SummaryThis study investigates how innovation is influenced by paying attention to brokers within a company. Brokers are individuals who bridge different groups, providing access to varied information. Analysis of internal data from a large software company reveals that employees who heed the ideas of brokers tend to be more innovative, especially in close‐knit networks. However, there is a notable tendency for people to ignore brokers, favoring information from familiar colleagues instead. This indicates a significant attention bias, where the potentially most valuable sources for innovation are often unattended. Our research highlights the critical need for a strategic approach to distributing attention within company networks, which can significantly boost innovative performance.