A social-cognitive perspective on firm innovation

Innovation is the central value of economic behavior, and this paper proposes a socialcognitive 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.