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Innovation in small and medium-sized companies: Knowledge integration mechanisms and the role of top managers’ networks

Author

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  • Fliaster, Alexander
  • Golly, Tanja

Abstract

Past research has revealed that knowledge integration is an important prerequisite for the success of new product development. For this reason, companies deploy a number of formal mechanisms to foster integration across multiple functions and hierarchical levels. In many SMEs, however, such formal mechanisms are complemented or even replaced by informal social networks among managers and employees. Despite the relevance of intraorganizational networks, past research on SMEs, however, was focused mainly on the interorganizational level of analysis. To cover this gap, we map ego networks of senior managers in SMEs and explore their knowledge exchange relationships both inside and across functional and hierarchical boundaries. Our study shows that these social networks are an essential driver of knowledge integration and innovation.

Suggested Citation

  • Fliaster, Alexander & Golly, Tanja, 2014. "Innovation in small and medium-sized companies: Knowledge integration mechanisms and the role of top managers’ networks," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 25(2), pages 125-147.
  • Handle: RePEc:rai:mamere:mrev-2014-02-fliaster
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    File URL: http://www.hampp-verlag.de/hampp_e-journals_mrev.htm#214
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    Cited by:

    1. Anna Bogomolnaia & Hervé Moulin & Fedor Sandomirskiy & Elena Yanovskaya, 2017. "Competitive Division of a Mixed Manna," Econometrica, Econometric Society, vol. 85(6), pages 1847-1871, November.

    More about this item

    Keywords

    SMEs; social networks; innovation; cross-functional integration; top managers; knowledge creation;
    All these keywords.

    JEL classification:

    • L64 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Machinery; Business Equipment; Armaments
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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