Network structure and innovation: The leveraging of a dual network as a distinctive relational capability

This paper employs comparative longitudinal case study research to investigate why and how strong dyadic interfirm ties and two alternative network architectures (a 'strong ties network' and a dual network') impact the innovative capability of the lead firm in an alliance network. I answer these intrinsically cross-level research questions by examining how three design-intensive furnishings manufacturers managed their networks of joint, design alliances with consulting industrial design firms over more than 30 years initially, in order to explore the sample lead firms' alliance behavior, I advance an operotionalization tie strength. Next, I unveil the strenghts ties and the weaknesses of a strong ties network. Finally, I show that the ability to integrate a large periphery of heterogeneous weak ties and a core of strong ties is a distintive lead firm's relafional capability, one that provides fertile ground for leading firms in knowledget-intensive alliance networks to gain competitive advantages whose sustainability is primarily based on the dynamic innovative capability resulting from leveraging a dual network architecture. Copyright (c) 2007 John Wiley & Sons, Ltd.