When Brokers Embrace Time: Implications of Brokerage Structure and Process on Firm Performance

While brokerage role diversity draws attention from the network research community, the benefits and costs of being a diversified broker rarely being discussed. This paper examines the moderating effects of temporal factors on the association between brokerage role diversity and innovation speed and profitability with the co-patenting network in China during 2005-2018. Specifically, we partition firms’ brokerage roles into three configurations—public, market, and mixed—based on organizational types of brokered partners. Public triads represent brokered parties being all from universities, brokered parties in market triads are all from firms, respectively, and mixed triads consist partners from both universities and firms. Higher diversity of a focal broker’s brokerages is beneficial for speeding innovation up at a firm but hinders the firm’s profitability. In addition, higher frequency, more regular rhythm, and a sequencing (universities as brokered parties at early stage) of conducting diversified brokerage roles boost the speed of innovation for brokers. Meanwhile brokerage duration and a sequencing (only firms as brokered parties at early stage) can mitigate the negative effect of brokerage role diversity on profitability. We extend prior research on the brokerage process with insights for firms undertaking new strategic moves in general.