Network Position and Firms’ Exploration Strategies: A Study of Two Regional Industry Clusters in Norway

Abstract

Management research has examined environmental and organizational antecedents for firms’ exploration. We complement this research by applying a network perspective to explain how firms adjust exploration strategies based on their interorganizational network positions. We particularly focus on two network constructs, closeness centrality and local cohesion. Closeness centrality captures a firm’s independent access to network knowledge and resources, and local cohesion reveals the connections between a focal firm’s associates. Combining network and survey data for 64 firms in two Norwegian regional industry clusters reveals exploration strategies’ association with network position. The positive effect of local cohesion is stronger than closeness centrality’s. Our findings indicate that network drivers act as antecedents of exploration.