The moderating effect of environmental uncertainty on the relationship between network structures and the innovative performance of a new venture

Network structures are critical in the acquisition of resources; however, their impact on innovative performance remains unclear, especially in an uncertain environment. This study aims to advance research on network research by investigating how the configuration of the industrial environment shapes the relationship between network structures of a new venture and its innovative performance.

Empirical support was derived from entrepreneurial survey data. Data were collected through a survey of 1,510 new ventures in Taiwan for this research study.

The authors find that innovative performance is impacted by different aspects of the network structure, and that environmental uncertainty contributes to this impact. Overall, the authors find that network structure, innovative performance and environmental uncertainty together contribute to a contingent view of the conditions under which network boundary conditions impact innovative performance.

Given the contradictory role of network centrality and the cooperative network on innovativeness, managers need to focus on acquiring a critical position in the industrial network rather than expecting to obtain resources and information from strong relationships with cooperators, especially in an uncertain environment.

This research contributes to network theory in two ways. First, it provides descriptive data on different aspects of the network structure and how these aspects impact innovative performance. Second, it sheds light on the configuration of resources and allocations for new ventures, which must compete with rivals in an uncertain environment.