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http://dx.doi.org/10.14400/JDC.2018.16.4.095

The Effect of Network Closure and Structural Hole in Technological Knowledge Exchange on Radical Innovation  

Ahn, Jae-Gwang (Department of Business Administration, Kumoh National Institute of Technology)
Kim, Jin-Han (Department of Business Administration, Kumoh National Institute of Technology)
Publication Information
Journal of Digital Convergence / v.16, no.4, 2018 , pp. 95-105 More about this Journal
Abstract
This study empirically test the roles of network closure and structural hole on radical innovation in technological knowledge exchange network in Gumi cluster. In doing so, we build 2,550 firm network, transforming association*firm(2-mode) to firm*firm(1-mode) network data. In addition, in order to investigate firms' attributes, we conduct survey for 101 firms in Gumi cluster using random sampling, and finally collect 86 firm samples. For analysis, we use ridge regression since network density and efficiency, indices of network closure and structural hole respectively, has a high level of multicollinearity. The findings show that structural hole has a significant and positive impact on radical innovation, but network closure has a significant and negative impact on radical innovation. This study contributes to present an empirical evidence of debate on network closure and structural hole based on past conceptual discussions and literature review and further goes a long way towards strategy formulation to establish social capital in accomplishing radical innovation. Further research is required that pays closer attention to features of technological knowledge, innovation types and interaction between network closure and structural hole, directing efforts to structural characteristics of various networks.
Keywords
Cluster network; Social network analysis; Social capital; Network closure; Structural hole; Radical innovation;
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