KNOWLEDGE FLOW, INNOVATIVE CAPABILITIES AND BUSINESS SUCCESS: PERFORMANCE OF THE RELATIONSHIP BETWEEN SMALL WORLD NETWORKS TO PROMOTE INNOVATION

Abstract

The question of how innovation comes about, and the circumstances under which it prospers, is a question that has continued to be the focus of academic research on innovation creation. Recent works have focused on how the capacity to innovate hinges on the ability to form networks; hence, the importance of the research. The article therefore answers the research question of whether the network relationships between similar ethnic, education background, and geographically clustered groups plays a significant role in innovation creation or not? Using the theoretical concept of a Small World Network, we use case study methodology to study the origins of several companies from the technology sector, who in recent years have emerged as successful businesses. The article examines the small world network dimensions of ethnicity, education, geography and the binding subject matter interest that initially formed these relationships, as well as the impact that these relationships have on innovation creation and business success.