When Network Centrality Is Useful for Firms' Creation of Technological Diversification

This study examines the occasions when network centrality is useful for firmsi¦ creation of technological diversification. Given the role of network centrality in accessing external technological knowledge (TK), I respectively employ R&D and manufacturing resource commitments, technological strengths, and financial slack as moderators to explore the consequences of TK use for technological diversification. The results show that network centrality does not have a positive effect on technological diversification. Thus, network centrality alone is insufficient to generate technological diversification. Furthermore, R&D resource commitments, technological strengths, and financial slack moderate the positive relationship between network centrality and technological diversification, whereas manufacturing resource commitments do not. Identifying the more influential moderators of internal resources can provide an approach to releasing the benefits of network centrality. Consequently, for a firm, having sufficien...