Does network board capital matter? A study of innovative performance in strategic SME networks

This article examines the effects of network board capital (i.e., human capital and relational capital) on total, radical and incremental network innovative performance. Results from a five-year longitudinal study of network boards in 53 strategic networks suggest that a network board's diversity, education level, and interlocking directorates with other such networks affect network innovative performance. The degree of board diversity and interlocking directorates primarily influence incremental innovation, whereas education level influences radical innovation. The study finds that a network board's diversity of expertise and education level are important for improving all components of innovative performance (total, radical and incremental) in smaller networks. Managerial implications of these findings are discussed.