The way in which firms innovate ideas and bring them to market is undergoing a fundamental change. Useful knowledge is increasingly dispersed outside the firm’s boundaries and the exceptionally fast time to market for many products and services suggest that some very different organising principles for innovation are needed. These developments have led to an increased interest in the electronic network of practice concept to facilitate innovation. This paper argues that innovative behaviour in electronic networks of practice is determined by three interacting systems — individual motivations, network communication structure, and the social context of the network. The theoretical position of the interactive process theory of innovation is used to support this claim.