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Purpose

This study aims to contribute to the debate on the firm’s innovative determinants. Drawing on the relevance of internal resources, such as the knowledge base, in developing the innovative practices, it also considers the multiplier effect of network competence, defined as the ability to develop and consciously manage relationships with other actors in the territory.

Design/methodology/approach

The study is based on data obtained from personal interviews with managers and oenologists from the wineries that adhered to the Protected Designation of Origin in the Alicante province/region.

Findings

The results confirm the positive effect of the knowledge base. In addition, it shows that increased competence in managing the firm’s relational context allows it to obtain external knowledge inputs, which, combined with internal knowledge, benefits its innovative practices.

Originality/value

This study contributes to a better understanding of how companies can improve their innovation by combining internal knowledge with developing and strengthening links with other agents in the territory.

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