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Leveraging the digital layer: the strength of weak and strong ties in bridging geographic and cognitive distances

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  • Milad Abbasiharofteh
  • Jan Kinne
  • Miriam Krüger

Abstract

Firms may seek non-redundant information through inter-firm relations beyond their geographic and cognitive boundaries (i.e., relations with firms in other regions and active in different fields). Little is known about the conditions under which firms benefit from this high-risk/high-gain strategy. We created a digital layer of 600,000 German firms by using their websites’ textual and relational content. Our results suggest that strong relations (relations with common third partners) between firms from different fields and inter-regional relations are positively associated with a firm’s innovation level. We also found that a specific combination of weak and strong relations confers greater innovation benefits.

Suggested Citation

  • Milad Abbasiharofteh & Jan Kinne & Miriam Krüger, 2024. "Leveraging the digital layer: the strength of weak and strong ties in bridging geographic and cognitive distances," Journal of Economic Geography, Oxford University Press, vol. 24(2), pages 241-262.
    • Handle: RePEc:oup:jecgeo:v:24:y:2024:i:2:p:241-262.
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    References listed on IDEAS

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    More about this item

    Keywords

    digital layer; weak and strong ties; proximity; innovation;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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