Relational Pluralism, Absorptive Capacity and Different Types of Firm Product Innovation

Relational Pluralism, Absorptive Capacity and Different Types of Firm Product Innovation

This conceptual study proposed how and the extent to which relational pluralism, defined as a firm’s multiple ties to actors within and outside its industry, can help firms to commercialize exploitative and exploratory product innovation, respectively. I conceptualize a firm’s network within its industry as insiders-based network and the firm’s network outside industry as outsiders-based network. I propose, first that firms maintaining multiple connections to actors in insiders-based network are more likely to commercialize exploitative product innovation; second, that firms maintaining multiple connections with actors in outsiders-based network are more likely to commercialize exploratory product innovation; and third, that firms’ absorptive capacity, as the moderator, strengthens the positive relationship between multiple ties in each network and commercialization of product innovation.