IDEAS home Printed from https://ideas.repec.org/a/bla/stratm/v45y2024i7p1326-1365.html
   My bibliography  Save this article

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

Author

Listed:
  • Luke Rhee
  • Paul Leonardi

Abstract

Research Summary This 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 Summary This 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.

Suggested Citation

  • Luke Rhee & Paul Leonardi, 2024. "Borrowing networks for innovation: The role of attention allocation in secondhand brokerage," Strategic Management Journal, Wiley Blackwell, vol. 45(7), pages 1326-1365, July.
    • Handle: RePEc:bla:stratm:v:45:y:2024:i:7:p:1326-1365
    DOI: 10.1002/smj.3585
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/smj.3585
    Download Restriction: no
    File URL: https://libkey.io/10.1002/smj.3585?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Giovanni Gavetti & Daniel A. Levinthal & Jan W. Rivkin, 2005. "Strategy making in novel and complex worlds: the power of analogy," Strategic Management Journal, Wiley Blackwell, vol. 26(8), pages 691-712, August.
    2. Paul R. Carlile, 2004. "Transferring, Translating, and Transforming: An Integrative Framework for Managing Knowledge Across Boundaries," Organization Science, INFORMS, vol. 15(5), pages 555-568, October.
    3. Marco Tortoriello & Ray Reagans & Bill McEvily, 2012. "Bridging the Knowledge Gap: The Influence of Strong Ties, Network Cohesion, and Network Range on the Transfer of Knowledge Between Organizational Units," Organization Science, INFORMS, vol. 23(4), pages 1024-1039, August.
    4. Isin Guler & Atul Nerkar, 2012. "The impact of global and local cohesion on innovation in the pharmaceutical industry," Strategic Management Journal, Wiley Blackwell, vol. 33(5), pages 535-549, May.
    5. Raina A. Brands & Martin Kilduff, 2014. "Just Like a Woman? Effects of Gender-Biased Perceptions of Friendship Network Brokerage on Attributions and Performance," Organization Science, INFORMS, vol. 25(5), pages 1530-1548, October.
    6. Srikanth Paruchuri, 2010. "Intraorganizational Networks, Interorganizational Networks, and the Impact of Central Inventors: A Longitudinal Study of Pharmaceutical Firms," Organization Science, INFORMS, vol. 21(1), pages 63-80, February.
    7. Ray Reagans, 2011. "Close Encounters: Analyzing How Social Similarity and Propinquity Contribute to Strong Network Connections," Organization Science, INFORMS, vol. 22(4), pages 835-849, August.
    8. J. P. Eggers & Sarah Kaplan, 2009. "Cognition and Renewal: Comparing CEO and Organizational Effects on Incumbent Adaptation to Technical Change," Organization Science, INFORMS, vol. 20(2), pages 461-477, April.
    9. Martine R. Haas & Morten T. Hansen, 2007. "Different knowledge, different benefits: toward a productivity perspective on knowledge sharing in organizations," Strategic Management Journal, Wiley Blackwell, vol. 28(11), pages 1133-1153, November.
    10. Ray Reagans & Param Vir Singh & Ramayya Krishnan, 2015. "Forgotten Third Parties: Analyzing the Contingent Association Between Unshared Third Parties, Knowledge Overlap, and Knowledge Transfer Relationships with Outsiders," Organization Science, INFORMS, vol. 26(5), pages 1400-1414, October.
    11. Marco Tortoriello, 2015. "The social underpinnings of absorptive capacity: The moderating effects of structural holes on innovation generation based on external knowledge," Strategic Management Journal, Wiley Blackwell, vol. 36(4), pages 586-597, April.
    12. Linus Dahlander & Siobhan O'Mahony & David M. Gann, 2016. "One foot in, one foot out: how does individuals' external search breadth affect innovation outcomes?," Strategic Management Journal, Wiley Blackwell, vol. 37(2), pages 280-302, February.
    13. Gino Cattani & Simone Ferriani, 2008. "A Core/Periphery Perspective on Individual Creative Performance: Social Networks and Cinematic Achievements in the Hollywood Film Industry," Organization Science, INFORMS, vol. 19(6), pages 824-844, December.
    14. Adam M. Kleinbaum & Toby E. Stuart & Michael L. Tushman, 2013. "Discretion Within Constraint: Homophily and Structure in a Formal Organization," Organization Science, INFORMS, vol. 24(5), pages 1316-1336, October.
    15. Tanya Menon & Jeffrey Pfeffer, 2003. "Valuing Internal vs. External Knowledge: Explaining the Preference for Outsiders," Management Science, INFORMS, vol. 49(4), pages 497-513, April.
    16. Denis A. Grégoire & Pamela S. Barr & Dean A. Shepherd, 2010. "Cognitive Processes of Opportunity Recognition: The Role of Structural Alignment," Organization Science, INFORMS, vol. 21(2), pages 413-431, April.
    17. Michela Bia & Alessandra Mattei, 2008. "A Stata package for the estimation of the dose–response function through adjustment for the generalized propensity score," Stata Journal, StataCorp LP, vol. 8(3), pages 354-373, September.
    18. Chai, Sen & Menon, Anoop, 2019. "Breakthrough recognition: Bias against novelty and competition for attention," Research Policy, Elsevier, vol. 48(3), pages 733-747.
    19. Michelle Rogan & Marie Louise Mors, 2014. "A Network Perspective on Individual-Level Ambidexterity in Organizations," Organization Science, INFORMS, vol. 25(6), pages 1860-1877, December.
    20. Manuel Gómez‐Solórzano & Marco Tortoriello & Giuseppe Soda, 2019. "Instrumental and affective ties within the laboratory: The impact of informal cliques on innovative productivity," Strategic Management Journal, Wiley Blackwell, vol. 40(10), pages 1593-1609, October.
    21. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sheen S. Levine & Michael J. Prietula & Ann Majchrzak, 2022. "Advice in Crisis: Principles of Organizational and Entrepreneurial Resilience," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(4), pages 145-168, December.
    2. Rajat Khanna & Isin Guler, 2022. "Degree assortativity in collaboration networks and invention performance," Strategic Management Journal, Wiley Blackwell, vol. 43(7), pages 1402-1430, July.
    3. Linda Argote & Sunkee Lee & Jisoo Park, 2021. "Organizational Learning Processes and Outcomes: Major Findings and Future Research Directions," Management Science, INFORMS, vol. 67(9), pages 5399-5429, September.
    4. Andries, Petra & Clarysse, Bart & Costa, Sergio, 2021. "Technology ventures' engagement of external actors in the search for viable market applications: On the relevance of Technology Broadcasting and Systematic Validation," Journal of Business Venturing, Elsevier, vol. 36(6).
    5. Christos Kolympiris & Sebastian Hoenen & Peter G. Klein, 2019. "Learning by Seconding: Evidence from National Science Foundation Rotators," Organization Science, INFORMS, vol. 30(3), pages 528-551, May.
    6. Ray Reagans & Param Vir Singh & Ramayya Krishnan, 2015. "Forgotten Third Parties: Analyzing the Contingent Association Between Unshared Third Parties, Knowledge Overlap, and Knowledge Transfer Relationships with Outsiders," Organization Science, INFORMS, vol. 26(5), pages 1400-1414, October.
    7. repec:hal:journl:hal-04850406 is not listed on IDEAS
    8. Brennecke, Julia & Sofka, Wolfgang & Wang, Peng & Rank, Olaf N., 2021. "How the organizational design of R&D units affects individual search intensity – A network study," Research Policy, Elsevier, vol. 50(5).
    9. Sander Hoogendoorn & Simon C. Parker & Mirjam van Praag, 2017. "Smart or Diverse Start-up Teams? Evidence from a Field Experiment," Organization Science, INFORMS, vol. 28(6), pages 1010-1028, December.
    10. Llopis, Oscar & D'Este, Pablo & McKelvey, Maureen & Yegros, Alfredo, 2022. "Navigating multiple logics: Legitimacy and the quest for societal impact in science," Technovation, Elsevier, vol. 110(C).
    11. Khanna, Rajat, 2021. "Aftermath of a tragedy: A star's death and coauthors’ subsequent productivity," Research Policy, Elsevier, vol. 50(2).
    12. Jacqueline N. Lane & Ina Ganguli & Patrick Gaule & Eva Guinan & Karim R. Lakhani, 2021. "Engineering serendipity: When does knowledge sharing lead to knowledge production?," Strategic Management Journal, Wiley Blackwell, vol. 42(6), pages 1215-1244, June.
    13. Sunkee Lee, 2019. "Learning-by-Moving: Can Reconfiguring Spatial Proximity Between Organizational Members Promote Individual-level Exploration?," Organization Science, INFORMS, vol. 30(3), pages 467-488, May.
    14. Massimo Maoret & Marco Tortoriello & Daniela Iubatti, 2020. "Big Fish, Big Pond? The Joint Effect of Formal and Informal Core/Periphery Positions on the Generation of Incremental Innovations," Organization Science, INFORMS, vol. 31(6), pages 1538-1559, November.
    15. Mariotti, Francesca & Haider, Sajjad, 2020. "Managing institutional diversity and structural holes: Network configurations for recombinant innovation," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    16. Srikanth Paruchuri & Snehal Awate, 2017. "Organizational knowledge networks and local search: The role of intra‐organizational inventor networks," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 657-675, March.
    17. Khanna, Rajat, 2023. "Passing the torch of knowledge: Star death, collaborative ties, and knowledge creation," Research Policy, Elsevier, vol. 52(1).
    18. Luke Rhee & Paul M. Leonardi, 2018. "Which pathway to good ideas? An attention‐based view of innovation in social networks," Strategic Management Journal, Wiley Blackwell, vol. 39(4), pages 1188-1215, April.
    19. Sheen S. Levine & Michael J. Prietula, 2012. "How Knowledge Transfer Impacts Performance: A Multilevel Model of Benefits and Liabilities," Organization Science, INFORMS, vol. 23(6), pages 1748-1766, December.
    20. Marco Tortoriello & Bill McEvily & David Krackhardt, 2015. "Being a Catalyst of Innovation: The Role of Knowledge Diversity and Network Closure," Organization Science, INFORMS, vol. 26(2), pages 423-438, April.
    21. Haibo Liu & Jürgen Mihm & Manuel E. Sosa & Manuel E. Sosa, 2018. "Where Do Stars Come From? The Role of Star vs. Nonstar Collaborators in Creative Settings," Organization Science, INFORMS, vol. 29(6), pages 1149-1169, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:stratm:v:45:y:2024:i:7:p:1326-1365. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/0143-2095 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.