The Impact of Global and Local Cohesion on Innovation in the Pharmaceutical Industry

Guler, I., Nerkar, A. (2012) The Impact of Global and Local Cohesion on Innovation in the Pharmaceutical Industry, Strategic Management Journal , 33(5): 535-549.

36 Pages Posted: 5 Nov 2016

See all articles by Isin Guler

Isin Guler

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

Atul A. Nerkar

University of North Carolina (UNC) at Chapel Hill - Management-Strategy Area

Date Written: November 4, 2012

Abstract

In this paper, we examine how the configuration of intra-organizational networks, and in particular, cohesion among members of an organization, influences organizations’ innovative output. We argue that the cohesion among R&D scientists could be at a local level or a global level, and that local and global cohesion may have different impacts on firms’ innovation performance. We test our hypotheses by examining the structure of the R&D collaboration networks within firms that operated in the pharmaceutical industry between 1981 and 1989, and their innovative outcomes – patents that led to new product launches. We find that local cohesion has a positive impact on the innovative performance of a firm, and global cohesion has a negative impact.

Suggested Citation

Guler, Isin and Nerkar, Atul A., The Impact of Global and Local Cohesion on Innovation in the Pharmaceutical Industry (November 4, 2012). Guler, I., Nerkar, A. (2012) The Impact of Global and Local Cohesion on Innovation in the Pharmaceutical Industry, Strategic Management Journal , 33(5): 535-549. , Available at SSRN: https://ssrn.com/abstract=2864589

Isin Guler (Contact Author)

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States

Atul A. Nerkar

University of North Carolina (UNC) at Chapel Hill - Management-Strategy Area ( email )

Chapel Hill, NC 27599
United States

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