Network Effects on Radical Innovation and Financial Performance: An Open-mindedness Approach



Document title: Network Effects on Radical Innovation and Financial Performance: An Open-mindedness Approach
Journal: BAR - Brazilian Administration Review
Database:
System number: 000552952
ISSN: 1807-7692
Authors: 1
1
2
3
Institutions: 1Pontificia Universidade Catolica do Rio Grande do Sul, Porto Alegre, Rio Grande do Sul. Brasil
2Universidad de Murcia, Murcia. España
3Universidad Politecnica de Cartagena, Cartagena, Murcia. España
Year:
Volumen: 13
Number: 4
Country: Brasil
Language: Inglés
Document type: Artículo
English abstract This study examines how companies can achieve high performance through certain organizational behaviors (open-mindedness and social networks) and innovation. The impact of open-mindedness in defiance of basic assumptions and processes could motivate the use of internal and external networks. These social networks are the cornerstone for the creation of knowledge and the construction of radical innovations, which in turn trigger the transformation new knowledge into organizational performance. We use structural equation modelling (SEM) to test our research model and hypotheses in a sample of 324 companies from the Brazilian industrial sector. Data were collected by a regular mail survey. The study brings a proper understanding that radical innovations play a crucial role for organizational performance in emerging economies. Results also show that open-mindedness is associated with both internal networks and external social networks. In addition, the external social network mediates the effects of open-mindedness on the internal social network. Finally, external social networks have an indirect influence on radical innovations, through internal social networks, and a direct effect on organizational performance.
Disciplines: Administración y contaduría
Keyword: Administración de instituciones
Keyword: Open-mindedness,
Social networks,
Radical innovation,
Financial performance,
Management of institutions
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