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The interaction between inter-firm and interlocking directorate networks on firm's new product development outcomes

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  • Mazzola, Erica
  • Perrone, Giovanni
  • Kamuriwo, Dzidziso Samuel

Abstract

This paper explores the interaction between a prominent board of directors and the network of inter-firm relationships on new product development. Specifically, we posit a positive interaction effect between a prominent board and the inter-firm network and structural holes positions on the number of new products developed by the firm. We test the theoretical framework on a sample of 1758 agreements among 1890 biopharmaceutical firms over the period 2006–2010. We find that by filtering, complementing and legitimizing information coming from the inter-firm network, a prominent interlocking directorate network can improve the inter-firm network's effects on new product development. We discuss important implications for how inter-personal networks (such as the board interlock directorate network) help to develop the effectiveness of inter-firm relationship networks in achieving new product development outcomes.

Suggested Citation

  • Mazzola, Erica & Perrone, Giovanni & Kamuriwo, Dzidziso Samuel, 2016. "The interaction between inter-firm and interlocking directorate networks on firm's new product development outcomes," Journal of Business Research, Elsevier, vol. 69(2), pages 672-682.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:2:p:672-682
    DOI: 10.1016/j.jbusres.2015.08.033
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