Geographic Network Diversity: How Does it Affect Exploratory Innovation?

This study examines the underexplored effect of the geographic configuration of entrepreneurs' networks on their ventures' levels of exploratory innovation. As entrepreneurs are found to engage in both proximate and distant knowledge ties, this paper's main predictor involves the geographic diversity of entrepreneurs' networks. The study theoretically develops the idea that the impact of geographic network diversity on ventures' level of exploratory innovation takes an inverted-U shape. It is also proposed that this effect is moderated by the relational configuration of entrepreneurs' networks in terms of tie strength. Analyses of data on 175 egocentric networks support the proposed ideas. Implications for interfirm network configuration, spatial lock-in, exploratory innovation and the broader space and innovation literature are also discussed.