Kelley School of Business

Abstract

Innovation networks can often be viewed as loosely coupled systems of autonomous firms. We propose that hub firms orchestrate network activities to ensure the creation and extraction of value, without the benefit of hierarchical authority. Orchestration comprises knowledge mobility, innovation appropriability, and network stability. We reject the view of network members as inert entities that merely respond to inducements and constraints arising from their network ties, and we embrace the essential player-structure duality present in networks.