The Effect of Network Relationships on Innovation in Service Industries

Abstract

Companies increasingly realize the need for innovation for growth. One of the key drivers of innovation is network relationships with various stakeholders such as customers, suppliers, competitors and investors. Doz and Wilson (2012) discuss that a firm may find critical skills, knowledge and capabilities needed for innovation in other firms. The ideas and knowledge for new products and services often result from a wide network of contributors. Successful firms collaborate on a number of innovation projects (Nidumolu, Ellison, Whalen and Billman, 2014). Ibarra and Hansen (2011) discuss the importance of collaboration and describe connectors as individuals who have multiple ties to different social worlds and who are able to connect people, ideas, and resources. newline