Network Effects on Radical Innovation and Financial Performance: An Open-mindedness Approach

Abstract This study examines how companies can achieve high performance through certain organizational behaviors (open-mindedness and social networks) and innovation. The impact of open-mindedness in defiance of basic assumptions and processes could motivate the use of internal and external networks. These social networks are the cornerstone for the creation of knowledge and the construction of radical innovations, which in turn trigger the transformation new knowledge into organizational performance. We use structural equation modelling (SEM) to test our research model and hypotheses in a sam...