Tie strengths of interfirm network, market uncertainty, and innovation: A case study

Abstract

This paper rather focuses on analyzing the impact of different network tie strengths on exploratory and exploitative innovation success. The case of Haitian Group is employed to explore and explain the relative propositions. Our key claim is that the benefits of each type of firm tie not only vary across each other but will be moderated by market uncertainty such that certain types of ties will matter more or less under certain conditions. Specially, strong ties are valuable in environments that require exploitation, while weak ties would be more appropriate for exploration. From the firm as a whole, exploration and exploitation are two essential innovative models, under which firms need make a reasonable choice between them according the development stage, market environment and innovative targets, and maintain the number of strong or weak ties at a reasonable proportion.