Innovation networks

Both formal and informal networks play their part in fostering innovation

 
Firms are a set of communication networks as much as they are a bundle of resources or contracts, and people in a firm exchange information and knowledge of many different kinds with each other. Some of it may be irrelevant to the firm’s performance, but even so communication can help people form closer connections which can help them get their job done. An example is when people discuss last night’s soccer game; in doing so, they also get to know each other better. Some information exchanges can be important to the company but difficult to manage, such as the informal exchange of work-related issues. Such exchanges can help the firm, for instance by speeding up decisions when formal channels are too slow, but sometimes they can also hurt the firm, for instance when gossip undermines a manager’s position. At the same time, managers can only control who exchanges what with whom on a formal basis, since management formally sets up permanent and transitory structures such as organisational governance models and day-to-day project teams. Exchanges in formal networks are important for the firm, but ultimately both formal and informal networks need to be managed simultaneously: proper structures that align the formal and informal knowledge exchange are essential for insightful and agile communication and innovation.

Rick Aalbers

Dr Rick Aalbers is an assistant professor at the Institute for Management Research Radboud University Nijmegen. He focuses his research on inter/intra-organisational innovation policy, new business development and organisational restructuring.

Wilfred Dolfsma

A professor of innovation and strategy at University of Groningen, School of Economics and Business, Dr Wilfred Dolfsma studies cooperation between firms and people that allows for innovation.

Otto Koppius

Otto Koppius is an assistant professor at the Rotterdam School of Management. His current research revolves around business and social networks as well as predictive modelling and business analytics.