Employee co-invention network dynamics and firm exploratory innovation: the moderation of employee co-invention network centralization and knowledge-employee network equilibrium

Drawing on a dynamic approach, increasing research investigates network dynamics at the inter-firm level in recent years. However, little is known about intra-firm employee network dynamics and their consequences for firm exploratory innovation. This paper addresses the gap by focusing on employee co-invention network dynamics conceptualized as employee turnover and across-team movement. Based on the knowledge-based view and transactive memory system theory, this research elaborates on the dual mechanism of employee co-invention network dynamics and proposes an inverted U-shaped relationship between employee co-invention network dynamics and firm exploratory innovation. Furthermore, employees and their innovation are structurally embedded in the intra-firm networks. This paper investigates the moderation effect of intra-firm network structures. First, employee co-invention network centralization, indicating a core-periphery co-invention structure among employees, may negatively moderate the inverted U-shaped relationship. Second, knowledge-employee network equilibrium, indicating an evenly- and broadly- distributed knowledge structure among employees, may positively moderate the inverted U-shaped relationship. Based on patent data of 76 high-tech firms over 31 years from 1990 to 2020, this paper develops novel quantitative measures and conducts panel regression analysis. Results support all the above predictions.

Automated summary

This study examines the relationship between intra-firm employee co-invention network dynamics and firm exploratory innovation, proposing an inverted U-shaped relationship. The research also reveals the moderating effect of intra-firm network structures on this relationship.