How do structural holes promote network expansion?

• We examine the relationship between structural holes affects network expansion. • We measure knowledge recombination by the potential for knowledge recombination and coordination costs of knowledge recombination. • Knowledge recombination regards as a key strategy to promote network expansion. Drawing from resource based view and social network theory, we explain how structural holes impact on network expansion in the R&D network. We adopt the social network perspectives to extend this research by offering a model that examines how knowledge recombination moderates relationship between structural holes and network expansion. We collect the panel patent data from information and communication technology (ICT) industry between 1994 and 2016 by Derwent Innovation Database, and use the fixed-effects negative binomial regression model to test the hypotheses. Results reveal that structural holes have a positive impact on network expansion. In addition, this relationship is positively moderated by the potential for knowledge recombination and negatively moderated by coordination cost of knowledge recombination.