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GIOVANNI PERRONE

The interaction between inter-firm and interlocking directorate networks on firm's new product development outcomes

  • Autori: Mazzola, E.; Perrone, G.; Kamuriwo, D.
  • Anno di pubblicazione: 2016
  • Tipologia: Articolo in rivista (Articolo in rivista)

Abstract

This paper explores the interaction between a prominent board of directors and the network of inter-firm rela- tionships on new product development. Specifically, we posit a positive interaction effect between a prominent board and the inter-firm network and structural holes positions on the number of new products developed by the firm. We test the theoretical framework on a sample of 1758 agreements among 1890 biopharmaceutical firms over the period 2006–2010. We find that by filtering, complementing and legitimizing information coming from the inter-firm network, a prominent interlocking directorate network can improve the inter-firm network's effects on new product development. We discuss important implications for how inter-personal networks (such as the board interlock directorate network) help to develop the effectiveness of inter-firm relationship networks in achieving new product development outcomes.

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