This paper by Gautam Ahuja, published in *Administrative Science Quarterly*, explores the impact of a firm's network structure on innovation output. The study uses a longitudinal approach to analyze the relationship between a firm's direct ties, indirect ties, and structural holes in its ego network and subsequent innovation output. The main findings suggest that both direct and indirect ties positively influence innovation, with the impact of indirect ties moderated by the number of direct ties. Structural holes, however, have a mixed effect: they can enhance innovation when they provide access to diverse information but can also hinder innovation when they reduce trust and cooperation among partners. The study uses data from 97 leading firms in the international chemicals industry, focusing on patenting activities and collaboration networks. The results support the hypotheses that direct ties and structural holes positively impact innovation, while the impact of indirect ties is moderated by the number of direct ties. The findings have implications for interorganizational network theory, suggesting that the optimal structure of interfirm networks depends on the objectives of network members.This paper by Gautam Ahuja, published in *Administrative Science Quarterly*, explores the impact of a firm's network structure on innovation output. The study uses a longitudinal approach to analyze the relationship between a firm's direct ties, indirect ties, and structural holes in its ego network and subsequent innovation output. The main findings suggest that both direct and indirect ties positively influence innovation, with the impact of indirect ties moderated by the number of direct ties. Structural holes, however, have a mixed effect: they can enhance innovation when they provide access to diverse information but can also hinder innovation when they reduce trust and cooperation among partners. The study uses data from 97 leading firms in the international chemicals industry, focusing on patenting activities and collaboration networks. The results support the hypotheses that direct ties and structural holes positively impact innovation, while the impact of indirect ties is moderated by the number of direct ties. The findings have implications for interorganizational network theory, suggesting that the optimal structure of interfirm networks depends on the objectives of network members.