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Networking Capability and Commercialization Performance: The Role of Network Structure

ABSTRACT Purpose: In this study, we explore the impacts of networking capability and its dimensions (i.e. impression management, network learning, finding, and managing) on network structure (i.e. size, diversity, flexibility), which eventually impacts commercialization performance (i.e. frequency, speed, radicalism, patents). Methodology: To address the study objective, we collected data from 220 managers and empirically examined the relationships in the proposed model. Findings: The results reveal that networking capability and its dimensions positively enhance firm commercialization performance. In addition, the mediating role of the business networks structure was also confirmed. Research Implications: Research results indicate that commercialization performance is significantly enhanced by networking capabilities and network structure, which provide opportunities for sharing information and exchanging resources. Practical Implications: First, our results indicate that networking capabilities contribute to the achievement of superior commercialization performance by renewing network structure, which, in turn, affects commercialization performance. Moreover, our study suggests that when networking capability is strong, the effect of network structure on commercialization performance could be higher. However, when networking capability is low, increase in network structure does not necessarily increase the effect of network structure on commercialization performance. On the contrary, improving network structure might negatively influence commercialization performance when networking capability is below certain levels. Therefore, firm actors can purposefully engage in the interactive networked activities that enable them to create the desired and favorable network structure in order to achieve the highest level of performance in the commercialization process. Originality/Value: This paper makes a number of important contributions. First, through an in-depth study of existing literature on networking capability, we introduce the impression management capability and network learning capability as two dimensions of networking capability that have received less attention in the prior studies. In addition, this study contributes to the commercialization literature by analyzing whether networking capability and network structure help firms release new products efficiently and successfully which lead to enhance the overall performance.