Investigating the Role of Network Heterogeneity on Network Capabilities and Knowledge Performance of Firms in the Biopharmaceutical Networks

Document Type : Original Research Paper

Authors

1 Ph D Student in technology management, Allameh Tabataba'i University, tehran, Iran

2 Associate Professor, Department of Technology Management and Entrepreneurship, Allameh Tabataba'i University

3 Associate Professor Malek Ashtar University of Technology

4 Associate Professor, Department of Technology Management and Entrepreneurship, Allameh Tabataba'i Universit

5 Associate Professor, Department of Industrial Management, Allameh Tabataba'i University

Abstract

Innovation networks refer to a set of firms and other institutions that work together for a common goal، which is the development of knowledge and innovation. The importance of these networks in technological fields such as biomedicine is significant. The purpose of this study is to investigate the role of network heterogeneity on network capabilities and knowledge performance of firms in biopharmaceutical networks. For this purpose، while identifying the main dimensions and components through theoretical foundations and interviewing 15 experts in the field of biopharmaceuticals، to answer the research questions، a model was developed. In order to test the research hypotheses، questionnaires collected from a number of biopharmaceutical knowledge-based companies across the country were analyzed using structural equation modeling and Smart Pls software. According to the obtained results، the role of network heterogeneity on network capabilities and knowledge performance of firms in networks was confirmed. Findings also showed that network heterogeneity has a more effective role on the knowledge performance through the development of network capabilities and network capabilities have a mediating role in the relationship between network knowledge heterogeneity and firm knowledge performance in the network. Accordingly، it is suggested that companies to successfully participate in innovation networks to communicate with a wide range of network members of different natures and develop their network capabilities.

Keywords

References

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Gilsing, V., & Nooteboom, B. (2006). Exploration and exploitation in innovation systems: The case of pharmaceutical biotechnology. Research Policy, 35(1), 1-23.
Goerzen, A., & Beamish, P. W. (2005). The effect of alliance network diversity on multinational enterprise performance. Strategic management journal, 26(4), 333-354.
Hardwick, Jialin Y. and Anderson, Alistair R. and Douglas, Cruickshank (2013) Trust formation processes in innovative collaborations: networking as knowledge building practices. European Journal of Innovation Management, 16 (1). 4-21
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In Advances in International Marketing|Adv. Int. Mark. (Vol. 20, pp. 277-319
Hurmelinna-Laukkanen, P., & Nätti, S. (2018). Orchestrator types, roles and capabilities–A framework for innovation networks. Industrial Marketing Management, 74, 65-78.
Kim, Y., &Lui, S. S. (2015). The impacts of external network and business group on innovation: Do the types of innovation matter? Journal of Business Research, 68(9), 1964-1973.
Lin, R. J., Tan, K. H., & Geng, Y. (2013). Market demand, green product innovation, and firm performance: evidence from Vietnam motorcycle industry. Journal of Cleaner Production, 40, 101-107.
Mahboudi, F., Hamedifar, H., & Aghajani, H. (2012). Medical biotechnology trends and achievements in Iran. Avicenna journal of medical biotechnology, 4(4), 2002-205.
Maula, M. V., Ahlström, J., Haahkola, K., Heikintalo, M., Lindström, T. S., Ojanperä, H., & Tiainen, A. T. (2006). The Prospects for Successful Early-Stage Venture Capital in Finland. Sitra reports, 70, 2006.
McGrath, H., O’Toole, T., Marino, L., & Sutton-Brady, C. (2018). A relational lifecycle model of the emergence of network capability in new ventures. International Small Business Journal, 36(5), 521-545.
Meseguer-Martinez, A., Ruiz-Ortega, M. J., & Parra-Requena, G. (2020). The social network of a science park: a study of heterogeneity. European Journal of International Management, 14(6), 1095-1118.
Mitrega, M., Ramos, C., Forkmann, S., &Henneberg, S. C. (2011). Networking capability, networking outcomes, and company performance: A nomological model including moderation effects. IMP Conference, Glasgow, 1-26.
Garousi Mokhtarzadeh, Nima, Amoozad Mahdiraji, Hannan, Jafarpanah, Ismail, Jafari-Sadeghi, Vahid and Cardinali, Silvio (2020) Investigating the impact of networking capability on firm innovation performance: using the resource-action-performance framework. Journal of Intellectual Capital, 21 (6). 1009-1034
Mu, J. (2014). Networking capability, network structure, and new product development performance. IEEE Transactions on Engineering Management, 61(4), 599-609.
Nambisan, S., & Sawhney, M. (2011). Orchestration processes in network-centric innovation: Evidence from the field. Academy of management perspectives, 25(3), 40-57.
Newell, A., Huang, Z., & Deng, J. (2017). Associative embedding: End-to-end learning for joint detection and grouping. Advances in neural information processing systems, 30.
Partanen, J., Kohtamäki, M., Patel, P. C., &Parida, V. (2020). Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow. International Journal of Production Economics, 221, 1-41. 
Pertusa-Ortega, E. M., Zaragoza-Sáez, P., & Claver-Cortés, E. (2010). Can formalization, complexity, and centralization influence knowledge performance?. Journal of Business Research, 63(3), 310-320.
Öberg, C., & Shih, T. T. Y. (2014). Divergent and convergent logic of firms: Barriers and enablers for development and commercialization of innovations. Industrial Marketing Management, 43(3), 419-428.
Qurashi, I. A., Khalique, M., Ramayah, T., Bontis, N., & Yaacob, M. R. (2020). Impact of intellectual capital on innovation in pharmaceutical manufacturing SMEs in Pakistan. International Journal of Learning and Intellectual Capital, 17(1), 61-76.
Reypens, C., Lievens, A., & Blazevic, V. (2021). Hybrid Orchestration in Multi-stakeholder Innovation Networks: Practices of mobilizing multiple, diverse stakeholders across organizational boundaries. Organization Studies, 42(1), 61-83.
Rodan, S., & Galunic, C. (2002, August). Knowledge Heterogeneity In Managerial Networks And Its Effect On Individual Performance. In Academy Of Management Proceedings (Vol. 2002, No. 1, Pp. Z1-Z6). Briarcliff Manor, Ny 10510: Academy Of Management.
Sabatier, V., Mangematin, V., & Rousselle, T. (2010). Orchestrating networks in the biopharmaceutical industry: small hub firms can do it. Production Planning and Control, 21(2), 218-228.
Sammarra, A., & Biggiero, L. (2008). Heterogeneity and specificity of Inter‐Firm knowledge flows in innovation networks. Journal of management studies, 45(4), 800-829.
Sandberg, J., Holmström, J., Napier, N., &Levén, P. (2015). Balancing diversity in innovation networks: Trading zones in university-industry R&D collaboration. European Journal of Innovation Management, 18(1), 44-69.
Santoro, G., Bresciani, S., & Papa, A. (2018). Collaborative modes with cultural and creative industries and innovation performance: the moderating role of heterogeneous sources of knowledge and absorptive capacity. Technovation, 40, 1-9.
Söderholm, P., Hellsmark, H., Frishammar, J., Hansson, J., Mossberg, J., &Sandström, A. (2019). Technological development for sustainability: The role of network management in the innovation policy mix. Technological Forecasting and Social Change, 138, 309-323.
Smart, P., Bessant, J., & Gupta, A. (2007). Towards technological rules for designing innovation networks: a dynamic capabilities view. International Journal of Operations & Production Management, 1-24.
Teng-Zeng, F. K. (2005). Research infrastructure and innovation systems in Africa: Enhancing higher education sector research. In 3rd Global Network for the Economics of Learning, Innovation and Competence-building System (Globelics) Africa 2005 Conference to held at the Pretoria West Campus of the Tshwane University of Technology, South Africa from, Vol. 31.
Tong, X., & Han, X. (2021). Knowledge network capability and organizational innovation: Network position transition and ambidextrous innovative behaviors as mediators. Social Behavior and Personality: an international journal, 49(9), 1-16.
Van der Valk, W., Sumo, R., Dul, J., & Schroeder, R. G. (2016). When are contracts and trust necessary for innovation in buyer-supplier relationships? A necessary condition analysis. Journal of Purchasing and Supply Management, 22(4), 266-277.
Walter, A., Auer, M., & Ritter, T. (2006). The impact of network capabilities and entrepreneurial orientation on university spin-off performance. Journal of business venturing, 21(4), 541-567.
Wang, C., & Hu, Q. (2020). Knowledge sharing in supply chain networks: Effects of collaborative innovation activities and capability on innovation performance. Technovation, 94, 1-13.
Wang, L. and Yan, J. and Chen, X. and Xu, Q. (2021) 'Do network capabilities improve corporate nancial performance? Evidence from nancial supply chains.', International journal of operations and production management., 41 (4). 336-358.
Zhang, H., Zhou, M., Rao, H., & Zhou, D. (2021). Dynamic simulation research on the effect of resource heterogeneity on knowledge transfer in R&D alliances. Knowledge Management Research & Practice, 19(3), 370-386.
networks. The Annals of Regional Science, 44(1), 21.
Gardet, E., & Mothe, C. (2012). SME dependence and coordination in innovation networks. Journal of Small Business and Enterprise Development, 19(2), 263-280.
Gausdal, A. H., & Nilsen, E. R. (2011). Orchestrating innovative SME networks. The case of “HealthInnovation”. Journal of the Knowledge Economy, 2(4), 586-600.
Gilsing, V., & Nooteboom, B. (2006). Exploration and exploitation in innovation systems: The case of pharmaceutical biotechnology. Research Policy, 35(1), 1-23.
Goerzen, A., & Beamish, P. W. (2005). The effect of alliance network diversity on multinational enterprise performance. Strategic management journal, 26(4), 333-354.
Hardwick, J., Anderson, A. R., & Cruickshank, D. (2013). Trust formation processes in innovative collaborations: Networking as knowledge building practices. European Journal of Innovation Management.
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In New challenges to international marketing. Emerald Group Publishing Limited.
Hurmelinna-Laukkanen, P., & Nätti, S. (2018). Orchestrator types, roles and capabilities–A framework for innovation networks. Industrial Marketing Management, 74, 65-78.
Kim, Y., &Lui, S. S. (2015). The impacts of external network and business group on innovation: Do the types of innovation matter? Journal of Business Research, 68(9), 1964-1973.
Mahboudi, F., Hamedifar, H., & Aghajani, H. (2012). Medical biotechnology trends and achievements in Iran. Avicenna journal of medical biotechnology, 4(4), 200.
McGrath, H., O’Toole, T., Marino, L., & Sutton-Brady, C. (2018). A relational lifecycle model of the emergence of network capability in new ventures. International Small Business Journal, 36(5), 521-545.
Meseguer-Martinez, A., Ruiz-Ortega, M. J., & Parra-Requena, G. (2020). The social network of a science park: a study of heterogeneity. European Journal of International Management, 14(6), 1095-1118.
Mitrega, M., Ramos, C., Forkmann, S., &Henneberg, S. C. (2011). Networking capability, networking outcomes, and company performance: A nomological model including moderation effects. IMP Conference, Glasgow.
Mokhtarzadeh, N. G., Mahdiraji, H. A., Jafarpanah, I., Jafari-Sadeghi, V., & Cardinali, S. (2020). Investigating the impact of networking capability on firm innovation performance: using the resource-action-performance framework. Journal of Intellectual Capital.
Partanen, J., Kohtamäki, M., Patel, P. C., &Parida, V. (2020). Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow. International Journal of Production Economics, 221, 107470.  
Pertusa-Ortega, E. M., Zaragoza-Sáez, P., & Claver-Cortés, E. (2010). Can formalization, complexity, and centralization influence knowledge performance?. Journal of Business Research, 63(3), 310-320.
Qurashi, I. A., Khalique, M., Ramayah, T., Bontis, N., & Yaacob, M. R. (2020). Impact of intellectual capital on innovation in pharmaceutical manufacturing SMEs in Pakistan. International Journal of Learning and Intellectual Capital, 17(1), 61-76.
Reypens, C., Lievens, A., & Blazevic, V. (2021). Hybrid Orchestration in Multi-stakeholder Innovation Networks: Practices of mobilizing multiple, diverse stakeholders across organizational boundaries. Organization Studies, 42(1), 61-83.
Sammarra, A., & Biggiero, L. (2008). Heterogeneity and specificity of Inter‐Firm knowledge flows in innovation networks. Journal of management studies, 45(4), 800-829.
Sandberg, J., Holmström, J., Napier, N., &Levén, P. (2015). Balancing diversity in innovation networks: Trading zones in university-industry R&D collaboration. European Journal of Innovation Management, 18(1), 44-69.
Santoro, G., Bresciani, S., & Papa, A. (2018). Collaborative modes with cultural and creative industries and innovation performance: the moderating role of heterogeneous sources of knowledge and absorptive capacity. Technovation.
Söderholm, P., Hellsmark, H., Frishammar, J., Hansson, J., Mossberg, J., &Sandström, A. (2019). Technological development for sustainability: The role of network management in the innovation policy mix. Technological Forecasting and Social Change, 138, 309-323.
Smart, P., Bessant, J., & Gupta, A. (2007). Towards technological rules for designing innovation networks: a dynamic capabilities view. International Journal of Operations & Production Management.
Tong, X., & Han, X. (2021). Knowledge network capability and organizational innovation: Network position transition and ambidextrous innovative behaviors as mediators. Social Behavior and Personality: an international journal, 49(9), 1-16.
Wang, C., & Hu, Q. (2020). Knowledge sharing in supply chain networks: Effects of collaborative innovation activities and capability on innovation performance. Technovation, 94, 102010.
Wang, L., Yan, J., Chen, X., & Xu, Q. (2021). Do network capabilities improve corporate financial performance? Evidence from financial supply chains. International Journal of Operations & Production Management.
Zhang, H., Zhou, M., Rao, H., & Zhou, D. (2021). Dynamic simulation research on the effect of resource heterogeneity on knowledge transfer in R&D alliances. Knowledge Management Research & Practice, 19(3), 370-386.

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  • Receive Date: 22 January 2022
  • Revise Date: 05 March 2022
  • Accept Date: 01 March 2022

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