Innovation Systems, Networks and Social Capital. The Different Roles of Weak and Strong Ties in Innovation Processes

Essay , 2014 , 5 Pages , Grade: 1,0

Business economics - Business Management, Corporate Governance

Innovation processes often mainly consist of the creation of genuine new knowledge or the recombination of existing knowledge in a new context. These processes are managed by people, who are also the carrier and translator of knowledge. As knowledge creation is only partially accomplished by one person on its own, and nearly all economic activities is embedded in social systems, the inter-communication between individuals within a firm or across firm boundaries must be acknowledged as equal important in the process of innovation. Network theories must be seen at the blurred boundaries between sociology, trying to understand which social layers are (positively) affected by having a broad and diverse or closed and narrow social nexus, and management theory, trying to understand the organizational implications of the nexus of the firms’ stakeholders. Therefore this essay will elaborate on the role of ties, in its different shapes from weak to strong, within the innovation process. It will particularly focus on when which shape of tie is particularly important for which kind of successful innovation (incremental versus radical). It will also show how the focus on knowledge developed in management theory and how certain theories implicitly use the notion of networks to explain innovation processes.

Inhaltsverzeichnis (Table of Contents)

• Innovation Systems, Networks and Social Capital: Discuss the different roles of weak and strong ties in innovation processes
• Knowledge as a Central Variable
• Knowledge-based View and Intellectual Capital View
• Types of Knowledge and Knowledge Transfer
• Open Innovation Model and Absorptive Capacity
• Knowledge Sharing and Knowledge Development
• Strong and Weak Ties
• Networks and their Risks
• Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This essay explores the role of weak and strong ties in innovation processes, particularly focusing on how different types of ties contribute to incremental versus radical innovation. It examines the connection between network theory, management theory, and the significance of social relationships in knowledge creation and sharing.

• The importance of social relationships in knowledge creation and sharing
• The different roles of weak and strong ties in innovation processes
• The relationship between network theory and management theory
• The impact of social capital on innovation
• The connection between knowledge transfer and innovation

Zusammenfassung der Kapitel (Chapter Summaries)

• The essay begins by introducing the concept of innovation processes and the importance of social interaction in knowledge creation and sharing. It highlights the significance of network theories in understanding the interplay between social layers and organizational implications.
• The second chapter delves into the historical development of research on knowledge as a central variable in innovation. It discusses the contributions of scholars like Schumpeter, Penrose, Becker, and others who emphasized the role of intangible values in innovation.
• The third chapter explores the knowledge-based view and intellectual capital view, highlighting the relevance of networks and social relationships within organizations. It emphasizes the importance of considering both know-how and know-who for successful innovation.
• The fourth chapter examines the different types of knowledge and their transfer mechanisms, particularly focusing on tacit and explicit knowledge. It underscores the importance of social capital, trust, and common understanding in facilitating knowledge transfer.
• The fifth chapter introduces Chesbrough's open innovation model and Cohen and Levianthal's concept of absorptive capacity. It argues that combining weak and strong ties can be highly beneficial for innovation, enabling the inflow of external knowledge and the effective utilization of internal expertise.
• The sixth chapter examines the research by Adenfeldt and Lagerström on knowledge sharing and knowledge development within transnational teams and centres of excellence. It highlights the advantages and disadvantages of strong and weak ties in different contexts.
• The seventh chapter delves into the work of Granovetter on strong and weak ties, emphasizing the importance of non-redundant information provided by weak ties for novel knowledge creation. It also discusses the network problem of information identification and the role of social norms and common values in knowledge exchange.
• The eighth chapter explores the research by Rost on the strength of strong ties in innovation, emphasizing their role in ensuring solidarity benefits and fostering tacit knowledge creation. It highlights the importance of balancing strong and weak ties for optimal innovation outcomes.
• The ninth chapter discusses the risks associated with networks, particularly the reliance on social norms and trust in the absence of formal contracts. It emphasizes the importance of fostering a system of innovation that encourages trust and knowledge sharing.

Schlüsselwörter (Keywords)

The essay focuses on innovation systems, networks, social capital, weak and strong ties, knowledge creation and sharing, tacit and explicit knowledge, open innovation, absorptive capacity, centres of excellence, transnational teams, and the role of social norms and trust in innovation processes.

• College: University of London
• Course: Innovation Systems, Networks and Social Capital
• Grade: 1,0
• Author: Kai Wright (Author)
• Publication Year: 2014
• Pages: 5
• Catalog Number: V295452
• ISBN (eBook): 9783656936114
• ISBN (Book): 9783656936121
• Language: English
• Tags: innovation, systems, networks, social, capital, different, roles, weak, strong, ties, processes