Why more isn’t always better: Examining the effects of network density on firms’ likelihood of new product innovation

Eric Schaap; Dominik Mahr; Ines Wilms; Jonas Klingwort; Dhruv Grewal

doi:10.1016/j.jbusres.2026.116192

Why more isn’t always better: Examining the effects of network density on firms’ likelihood of new product innovation

Eric Schaap
, Dominik Mahr
, Ines Wilms
, Jonas Klingwort
, Dhruv Grewal

Maastricht University
Maastricht University School of Business and Economics
Statistics Netherlands/Centraal Bureau Voor de Statistiek
Toyota Chair in E-Commerce and Electronic Business and Professor of Marketing
Babson College
EGADE Business School

Research output: Contribution to journal › Article › peer-review

Abstract

In today’s interconnected business landscape, firms leverage interorganizational networks to drive innovation. Network benefits depend on their structure, particularly the interconnectedness of a firm’s partners and their own partners − known as higher-order network density. Adopting an empirics-first approach, we examine how higher-order network density and cognitive distance - the dissimilarity in knowledge bases, organizational focus, and technological expertise between firms - jointly impact product innovation. We analyze a comprehensive Dutch cross-industry network using a novel approach combining traditional innovation outcomes data with web-based network analysis, and find a curvilinear relationship between higher-order network density and product innovation, contingent on cognitive distance. Moving beyond the ego-network lens exposes a critical insight: When firms and network partners are cognitively distant, both the benefits of moderate density and costs of excessive density are amplified. Our approach offers practical tools for mapping networks, addressing challenges managers face in structuring networks for innovation.

Original language	English
Article number	116192
Journal	Journal of Business Research
Volume	212
Early online date	20 Apr 2026
DOIs	https://doi.org/10.1016/j.jbusres.2026.116192
Publication status	Published - 31 Jul 2026

Data Availability Statement

The data that has been used is confidential.

Acknowledgements

We gratefully acknowledge the contributions of our late colleague and collaborator, Piet Daas. His pioneering work on combining survey data with web-based methods and his expertise in innovation measurement were instrumental in this research. Piet Daas was one of the coauthors of this paper, but unfortunately passed away during the writing of this paper. We did not put him as an author on the paper, as we do not know if his views were similar to those of the other coauthors.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

Keywords

Cognitive distance
Network density
Product innovation
Web scraping

ASJC Scopus subject areas

Marketing

Access to Document

10.1016/j.jbusres.2026.116192Licence: CC BY

Cite this

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AU - Schaap, Eric

AU - Mahr, Dominik

AU - Wilms, Ines

AU - Klingwort, Jonas

AU - Grewal, Dhruv

PY - 2026/7/31

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N2 - In today’s interconnected business landscape, firms leverage interorganizational networks to drive innovation. Network benefits depend on their structure, particularly the interconnectedness of a firm’s partners and their own partners − known as higher-order network density. Adopting an empirics-first approach, we examine how higher-order network density and cognitive distance - the dissimilarity in knowledge bases, organizational focus, and technological expertise between firms - jointly impact product innovation. We analyze a comprehensive Dutch cross-industry network using a novel approach combining traditional innovation outcomes data with web-based network analysis, and find a curvilinear relationship between higher-order network density and product innovation, contingent on cognitive distance. Moving beyond the ego-network lens exposes a critical insight: When firms and network partners are cognitively distant, both the benefits of moderate density and costs of excessive density are amplified. Our approach offers practical tools for mapping networks, addressing challenges managers face in structuring networks for innovation.

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KW - Network density

KW - Product innovation

KW - Web scraping

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Why more isn’t always better: Examining the effects of network density on firms’ likelihood of new product innovation

Abstract

Data Availability Statement

Acknowledgements

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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