Please use this identifier to cite or link to this item: https://doi.org/10.1287/mnsc.1120.1605
Title: The evolving impact of combinatorial opportunities and exhaustion on innovation by business groups as market development increases: The case of Taiwan
Authors: Mahmood, I. 
Chung, C.-N. 
Mitchell, W.
Keywords: Business groups
Effectiveness
Generalized networks
Innovation
Market development
Research and development
Strategy
Issue Date: May-2013
Citation: Mahmood, I., Chung, C.-N., Mitchell, W. (2013-05). The evolving impact of combinatorial opportunities and exhaustion on innovation by business groups as market development increases: The case of Taiwan. Management Science 59 (5) : 1142-1161. ScholarBank@NUS Repository. https://doi.org/10.1287/mnsc.1120.1605
Abstract: Business groups are key sources of innovation in emerging market economies, but we understand little about why innovativeness differs across groups and over time. Variation in the density of intragroup buyer- supplier ties, which are common structural linkages among group affiliates, can help explain both cross-sectional and temporal heterogeneity of group innovativeness. We argue that greater buyer-supplier density within a group initially creates combinatorial opportunities that contribute to group innovativeness but ultimately generates combinatorial exhaustion that constrains innovation. Combinatorial exhaustion will set in at lower levels of density as the market environment becomes more developed because the opportunity costs of local search increase. The research introduces a dynamic argument to studies of business-group innovation. © 2013 INFORMS.
Source Title: Management Science
URI: http://scholarbank.nus.edu.sg/handle/10635/53505
ISSN: 00251909
DOI: 10.1287/mnsc.1120.1605
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