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| Author: | Molina-Morales, F.X. Martinez-Fernandez, M.T. |
| Title: | Too much love in the neighborhood can hurt: How an excess of intensity and trust in relationships may produce negative effects on firms |
| Journal: | Strategic Management Journal
2009 : SEP, VOL. 30:9, p. 1013-1023 |
| Index terms: | strategic planning management innovation networks trust industries companies Spain |
| Freeterms: | social capital |
| Language: | eng |
| Abstract: | This paper aims at providing a better understanding of the effect of social networks on innovation through the analysis of territorial agglomerations of firms. It is critisized that the same mechanisms that form the basis of efficient, continuous improvements of clustered firms can also be considered as limitations. This paper suggests that the impact of social capital decreases beyond a certain point of development. Actually, the effect of social interactions and trust on firm value creation can be described as an inverted U-shaped curve. The study is based on a sample of over 150 firms in the Valencia region of Spain. |
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