TY - JOUR
T1 - Making the most of where you are
T2 - Geography, networks, and innovation in organizations
AU - Funk, Russell J.
PY - 2014/2/1
Y1 - 2014/2/1
N2 - Drawing on insights from macro- and microlevel research, I develop and test a theory of how the makeup of firms' local environments influences their ability to generate innovations. I propose that although geographic proximity to industry peers can enhance performance, such effects are moderated by intraorganizational network structures. Data on collaborations among inventors and the geographic locations of 454 US companies active in nanotechnology R&D between 1990 and 2004 are used to show that as proximity to industry peers decreases-and knowledge spillovers become less common-inefficient networks are beneficial because they create and sustain diversity internally. For firms with high proximity, more cohesive network structures that facilitate information processing are desirable.
AB - Drawing on insights from macro- and microlevel research, I develop and test a theory of how the makeup of firms' local environments influences their ability to generate innovations. I propose that although geographic proximity to industry peers can enhance performance, such effects are moderated by intraorganizational network structures. Data on collaborations among inventors and the geographic locations of 454 US companies active in nanotechnology R&D between 1990 and 2004 are used to show that as proximity to industry peers decreases-and knowledge spillovers become less common-inefficient networks are beneficial because they create and sustain diversity internally. For firms with high proximity, more cohesive network structures that facilitate information processing are desirable.
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U2 - 10.5465/amj.2012.0585
DO - 10.5465/amj.2012.0585
M3 - Article
AN - SCOPUS:84900401555
VL - 57
SP - 193
EP - 222
JO - Academy of Management Journal
JF - Academy of Management Journal
SN - 0001-4273
IS - 1
ER -