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A Social-Cognitive Perspective on Firm Innovation

Author(s): Yang Xu

Citation: Yang Xu, (2011) "A Social-Cognitive Perspective on Firm Innovation," Journal of Strategic Innovation and Sustainability, Vol. 7, Iss. 1, pp. 1 - 11

Article Type: Research paper

Publisher: North American Business Press


Innovation is the central value of economic behavior, and this paper proposes a social-cognitive
perspective for studying the sources of firm innovation. In the context of firm innovation, the cognitions of
top management teams or an entrepreneur shape the way they use the social structure available to them,
while the social structures influence the embedded actors’ cognitions and ultimately their strategic
actions. Managers and entrepreneurs form collaborative partnerships designed to achieve innovation and
competitiveness. During this dynamic social learning process, cognitive differences influence the
formation of social capital and its realized benefits. The impact of social capital on innovation can hardly
be evaluated without understanding individual cognitive characteristics first. By distinguishing between
cognitive structures, as well as social capital characteristics, and by investigating their effects on firm
innovation, this paper extends the literature on organization theory and innovation research.