How to Build a Network that Facilitates Firm‐level Innovation: An Integration of Structural and Managerial Perspectives

Abstract In this paper, we examine to what extent the firm’s propensity be embedded in a network with advantageous structural attributes is driven by its capabilities for management. Specifically, discern management practices on two organizational levels (relationship (RM) and portfolio (PM)) explore their effects three dimensions of local structure (network centrality (NC), knowledge complementarity (KC), tie strength (TS)). To test our hypotheses, collect sociometric survey data from largest inter‐firm German energy industry. The results indicate that intra‐firm processes indeed are key enablers advantages. Further, demonstrate RM PM exert distinct effects: helps firm improve NC, leads increased TS, KC an additive effect capabilities. all, work contributes theory strategic networks providing integrated perspective how benefit innovation performance.