Dynamic network capabilities for innovation within local and global networks

This chapter studies the relationship between innovation, networking and performance by interpreting the firm as a bundle of resources and capabilities. It is generally recognized that networking and innovation are connected (Powell, 1990; Teece, 2000) and that performance depends on successful innovation (Hamal & Prahalad 1994; Christensen and Overdorf, 2000). In particular, long term performance seems to be more connected with “exploration network”, while short term performance seems to be more linked to “exploitation network” (Nooteboom, 2004). First of all, this contribution aims at establishing a relationship between individual firm performance and its networking capacity and innovation. Secondly, the objective is to establishing a relationship, at the network level of analysis, between the above mentioned taxonomy of networks and economic/innovative performance.