The Impact of Customer-Firm Network Ties on Innovation: The Mediating Role of Customer Knowledge Dimensions

The study investigates how customer-firm network ties impact corporate innovation, with customer knowledge dimensions as a mediator. Focusing on two types of network relationships between firms and customers—strong and weak — the research examines how each type fosters different innovation outcomes. We suggest that strong ties enhance incremental innovation by enabling companies to gather indepth knowledge from loyal customers, thus refining existing products. Conversely, weak ties facilitate radical innovation by providing access to diverse perspectives across broader networks, which helps firms identify emerging customer needs and develop path-breaking solutions. This conceptual model emphasizes the strategic role of customer-firm ties in advancing incremental and radical innovation.