Complementary effects of clusters and networks on firm innovation: A conceptual model

We develop a conceptual model that explains how a firm's cluster and network complement each other in enhancing the firm's likelihood of technological innovations. We identify critical innovation catalysts-awareness and motivation—and innovation barriers—resource constraints, organizational rigidity, and uncertainty. Our conceptual model explains how various factors in the cluster such as competitive intensity, social interaction intensity, and cluster vitality and network factors such as resource potential, acquisition orientation, co-development orientation, and network vitality impact innovation catalysts and barriers and subsequently the firm's likelihood of generating incremental and breakthrough innovations. We discuss several promising avenues for future research.