A recent study has found that when companies are linked in a network of strategic alliance relationships with only a few degrees of separation, they are more innovative.
Jointly conducted by the University of Washington and New York University, and as reported in Science Daily, the researchers examined the pattern or structure of strategic alliance relationships among companies. What they found is that the way firms are connected to one another influences the number of patented inventions they obtained.
According to the researchers, companies reap greater benefits when they are part of a close-knit network — characteristic of a “small world network”. Why? Because the close cooperation that is fostered by these kinds of alliances helps the alliance partners to exchange information in a faster and more meaningful way. Read the article to find how you can introduce more innovation into your alliances!