Change Is Good, But Not Too Much: Dynamic Positioning in the Interfirm Network and New Product Development

This research considers the dynamic positioning of an enterprise in an interfirm network and its propensity for new product development. Specifically, we explore how firms reconcile the dichotomy between central and structural holes network positions, by dynamically shifting from a central to a structural holes position (and vice versa) over time. By grounding this research in network dynamics theory, we argue how prior strong central (structural holes) network positions in the interfirm network increase the likelihood the firm will benefit from structural holes (central) positions in the following time period. We also propose that these positions can be modeled by an inverted U-shaped rela…