Between Networks and Communities: Challenges for an Optimal Innovation Structure

Inter-organisational networks and communities of practice are two areas of inquiry of interest to knowledge management, especially when innovation is an important organisational goal. These two areas are separated by different foci, assumptions and approaches. For this reason they are often seen as opposing approaches to enabling innovation. The paper argues that whilst networks and communities are different structures, they have complementary roles to play in innovation and when combined could bring organisations closer to an optimal innovative structure. It is proposed that innovation networks are conducive to the exploration aspects and communities of practice support exploitation aspects of the innovation process. What is to be considered optimum will be dependent on the specific context determined by several network concepts, namely strength and density of ties, cognitive distance, and absorptive capacity.