Understanding novelty creation in exploration networks - Structural and relational embeddedness jointly considered

In exploration networks the key-organisational question is not how to organise a division of tabour but instead how to create novelty. The aim of this paper is to develop an understanding of how such novelty in exploration networks is created. Based on an empirical analysis of the multimedia and biotechnology industries in the Netherlands, this paper shows that exploration networks face a trade-off between diversity and selection. Moreover, the findings indicate that depending on the type of exploration task, exploration networks need to make a combination of density and tic strength in such a way that diversity and selection are aligned. The paper concludes, among others, that the views of Burt, Coleman and Granovetter should not be seen as contradictory, but rather as proponents of complementary views. (C) 2008 Elsevier Ltd. All rights reserved.