Abstract
Research linking interorganizational networks to innovation has emphasized the knowledge recombination benefits associated with spanning structural holes and crossing institutional boundaries. However, network research has also highlighted that, while structural and institutional separation may provide increasing levels of knowledge diversity, this heterogeneity does not necessarily translate into novel knowledge re-combinations. Our study addresses these issues by uncovering which network configurations are responsible for novel knowledge recombination and how firms develop a capability at managing diversity through a qualitative study undertaken in the European motorsport industry. The findings show that motorsport companies embark on two different network configurations which allow for unique recombination processes and outcomes. This also underlines the development of three overarching network management capabilities which contribute to managing diversity and knowledge integration efforts. Our research, therefore, provides a deeper understanding of how firms may configure their networks for recombinant innovation and the role of agency in mobilizing and managing diverse knowledge towards innovation.