Innovation Activities, Business Networks and Firm Performance: Review Article

Abstract

Innovation is generally regarded as a critical success factor in sustaining growth and competitiveness of firms in domestic and global markets. In response to this demanding competition, firms put innovation strategy and find way to diffuse effective innovations using their business network. The importance of network activities for innovation diffusion and innovation research has been recognized only recently. Besides, the use social network analysis as a research tool also becomes a novel exercise. This review aims at highlighting the importance of innovation to firms, the role of network activities in firm innovation, and the use of social network analysis techniques in firm innovation analysis. Lastly, review of some empirical evidences relating innovation activities to firms' performance.