Too much love in the neighborhood can hurt: how an excess of intensity and trust in relationships may produce negative effects on firms

This study aims to provide a better understanding of the effect of social networks on innovation through the analysis of territorial agglomerations of firms. Critical voices argue that the same mechanisms that form the basis of efficient, continuous improvements of clustered firms can also be consid...

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Veröffentlicht in:Strategic management journal 2009-09, Vol.30 (9), p.1013-1023
Hauptverfasser: Molina-Morales, F. Xavier, Martínez-Fernández, M. Teresa
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container_title Strategic management journal
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creator Molina-Morales, F. Xavier
Martínez-Fernández, M. Teresa
description This study aims to provide a better understanding of the effect of social networks on innovation through the analysis of territorial agglomerations of firms. Critical voices argue that the same mechanisms that form the basis of efficient, continuous improvements of clustered firms can also be considered as limitations. We suggest that the impact of social capital decreases beyond a certain point of development. In fact, the effect of social interactions and trust on firm value creation can be described as an inverted U-shaped curve. The study is based on a sample of 154 firms in the Valencia region of Spain. Implications of the study have relevant prescriptions for regional planners and individual entrepreneurs.
doi_str_mv 10.1002/smj.766
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language eng
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source Access via Wiley Online Library; JSTOR Archive Collection A-Z Listing
subjects Agglomeration
Business innovation
Business structures
Corporate strategies
Correlations
Impact analysis
industrial district
innovation
Innovation diffusion
Innovations
Location of industry
Management science
networks
Research Notes and Commentaries
Social capital
Social innovation
Social interaction
social interactions
Social networking
Social networks
Social structures
Spain
Strategic management
Studies
Technological innovation
Trust
title Too much love in the neighborhood can hurt: how an excess of intensity and trust in relationships may produce negative effects on firms
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