How symmetry between intrafirm knowledge and collaboration structures influences exploratory innovation under conditions of combinability

Abstract

We examine how symmetry between intrafirm knowledge and collaboration structures influences firms' exploratory innovation performance. Symmetry means that the inventors' collaboration structure mimics their knowledge structure, implying that inventors with similar domain knowledge collaborate, whereas inventors with dissimilar domain knowledge do not. We argue and show that intrafirm symmetry is the commonly used form by most firms, as it is intuitive and pays off on average. However, it also comes with an inherent risk for their exploratory innovation performance. To address this, we include a key condition of a firm's technological environment: the ease or difficulty with which its knowledge domains can be combined. Based on a sample of 170 publicly traded semiconductor firms over 23 years, we find a positive association between the symmetry of a firm's collaboration and knowledge structure and its exploratory innovation performance under average combinability. This relationship changes when firms operate under low or high combinability conditions. Both these conditions favor firms that deviate from symmetry by relying on a parallel, isolated configuration or multidisciplinary configuration. Our contribution to the literature lies herein that we show when firms and their managers should pay attention to stimulating and optimizing collaboration, as has been the dominant focus until now, but also, and equally important, when disbanding this standing collaboration among inventors is more effective for a firm's exploratory innovation. Most firms overlook the risk that comes with a symmetric configuration under conditions of low or high combinability and are better off instead through one of two less common, asymmetric configurations of their inventor collaboration and knowledge structures.