Network Centrality and Firm Innovation: A Social Network Analysis of the Monaghan Furniture Industry

This research seeks to empirically explore the relationship between the network positions assumed by firms and their capacity for innovation. Using social network analysis techniques this paper examines the effect of network centrality in inter-firm networks on the innovation performance of small firms. Looking at a network of furniture manufacturers, this paper provides a unique insight into the innovation and networking activities of firms within a low technology sector. In addition this paper explores the factors affecting the position a firm assumes within a network. The paper finds some evidence indicating a relationship between network centrality; firm size; strategy and absorptive capacity. The paper also finds evidence of a positive correlation between network degree centrality and firm innovation.