In online communities, members with similar objectives congregate to undertake innovation tasks within self-organizing groups. These groups are nested virtually in group- and community-level networks in the fluid and boundary ambiguous online communities. We examine the impact of a salient feature of online community innovation networks: membership overlap and its effects on online group product innovation performance. Drawing from a multilevel network perspective of online communities, and integrating resource competition theory with the concept of latent network capital inherent in online organizations, we propose that member overlap density negatively affects group product innovation performance, whereas latent bonding positively affects group product innovation performance. Additionally, we investigate how community-level network structures, specifically internal bonding and latent bridging, moderate the impact of both member overlap density and latent bonding on group product innovation performance. Results of a pooled panel data comprising 37,072 self-organizing groups in 463 game product creative workshop communities from Steam support our theory. Our findings contribute to the literature on innovation in the online community by incorporating the multilevel network perspective, resources competition view, and latent network capital.