Borrowing networks for innovation: The role of attention allocation in secondhand brokerage

Luke Rhee and Paul Leonardi

Strategic Management Journal, 2024, vol. 45, issue 7, 1326-1365

Abstract: Research Summary This study investigates how people connecting with brokers who span structural holes in a firm's communication networks can enhance their innovative performance. Through sociometric data from a large software company, we observe that individuals who pay attention to information from brokers achieve higher innovative performance compared with those who ignore such information. The advantage of paying attention to brokers' information is more pronounced when people operate in highly constrained networks. Yet, our post hoc analysis reveals that people typically allocate less attention to information from brokers than from local colleagues—they systematically do the opposite of what they should do for innovative performance. Our findings regarding the role of attention for secondhand brokerage make significant contributions to studies of networks and innovation for behavioral strategy. Managerial Summary This study investigates how innovation is influenced by paying attention to brokers within a company. Brokers are individuals who bridge different groups, providing access to varied information. Analysis of internal data from a large software company reveals that employees who heed the ideas of brokers tend to be more innovative, especially in close‐knit networks. However, there is a notable tendency for people to ignore brokers, favoring information from familiar colleagues instead. This indicates a significant attention bias, where the potentially most valuable sources for innovation are often unattended. Our research highlights the critical need for a strategic approach to distributing attention within company networks, which can significantly boost innovative performance.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/smj.3585

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:stratm:v:45:y:2024:i:7:p:1326-1365

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0143-2095

Access Statistics for this article

More articles in Strategic Management Journal from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().