The Mechanism Of The Knowledge Network Dual Embeddedness And The Upgrading Of Innovation Capability

The transformation and upgrading of industrial clusters is closely related to the regional economy's development. Recently, the common situation such as "low-end lockin" of China's industrial clusters still remains unchanged, and the eccentric phenomena of "high-end in but low-end out" occur in some industrial clusters during the processes of transformation and upgrading.Most previous literatures discussing the paths and forms of industrial clusters" transformation and upgrading are based on the cluster level, attempting to give countermeasures and suggestions for the development of clusters:but few studies put forward based on the clustered firm level. This paper maintains that concerning industrial clusters'transformation and upgrading, the main actors are clustered firms and the foothold is these firms'capabilities. Only when clustered firms get rid of conventional developing paths and realize competence transition, can they lead and guide the evolution of the whole industrial clusters. Therefore, based on network embeddedness theory, this paper focuses on the clustered firm level to study the inner mechanisms of dual embeddedness---local knowledge network and ultra-local knowledge network, affects clustered firms' capability by large sample experiment. In order to understand the inner mechanism, the studies start from complementary knowledge integration and supplementary knowledge integration to put out and test the mediating function of knowledge integration to the relationships between "dual embeddedness and firms'innovation capability upgrading". Lastly, by recognizing clustered firms as main actors, we build a theoretical logic of "Dual Embeddedness (local knowledge network and ultra-local knowledge network)---knowledge Integration (complementary knowledge integration and supplementary knowledge integration)---innovation capability upgrading". Through the above analysis, this study intends to provide strategic thinking to enhance clustered firms' innovation capability, so that a new pattern of industrial clusters'transformation is provided. This study is progressively deepened by next three sub-studies.Sub-study1:The content definition and measurement method of knowledge integration for clustered firm is investigated. Firstly, after systematically analyzing existing literatures on knowledge integration and knowledge reconstruction, we point out the connotation and characteristics of knowledge integration in the cluster background. It is defined as a dynamic cycle of knowledge acquisition knowledge deconstruction, knowledge fusion and knowledge reconstruction. Secondly, a rigorous scale development process is taken to design a knowledge integration scale, which contains14items.306questionnaires were distributed to get the result of exploratory factor analysis, confirmatory factor analysis and reliability analysis, which support the validity and reliability of the scale.Sub-study2:The evolution mechanism of the knowledge network dual embeddedness and innovative capabilities'upgrading is investigated from a dynamic perspective. Both of local and ultra-local knowledge networks provide different resources and capabilities for the growth of clustered firms. In different stages of development, clustered firms have difference in patterns of embeddedness, innovation capability characteristics and innovation capacity upgrading. Therefore, we selected two leading enterprises in two manufacturing industrial clusters in Zhejiang Province, and with more than two decades'case study, we propose an initial proposition and model.Sub-study3:Combined with the first two sub-studies, based on network embeddedness theory, knowledge-based theory and capacity theory, a theoretical logic:"knowledge network dual embeddedness (local network and ultra-local network)---knowledge integration (complementary knowledge integration and supplementary knowledge integration)---innovation capability upgrading" is build up. Large sample experiment shows:(1) Dual embeddedness positively affects firms'innovation capability upgrading. Greater effects on enterprises'radical innovation capability come from ultra-local embeddedness (local embeddedness doesn't have significantly positive effect on radical innovation capability). Both local and ultra-local knowledge network embeddedness have significantly positive effect on incremental innovation capability.(2) Dual embeddedness plays a significantly positive role in knowledge integration. Comparing the multiple regression coefficients, we find:local embeddedness has more effect on clustered firm supplementary knowledge integration while ultra-local embeddedness has more effect on complementary knowledge integration.(3) Knowledge integration plays a mediating effect in the relation of "Dual embeddedness-innovation capability". Supplementary knowledge integration acts as a mediator between dual embeddness and incremental innovation capability; and complementary knowledge integration acts as a mediator between dual embeddedness and radical innovation.Compared with the existing achievement on areas such as cluster upgrading. network embeddedness. innovation capability, this research contributes to innovation and development mainly in the following areas:(1) Innovation in research logic. A new research logic, i.e.," Dual embeddedness---Knowledge Integration---Innovation capability upgrading" is established in this paper. In detail, we propose:â‘ Innovation capability upgrading of clustered firms is the precondition of industrial clusters'transformation and upgrading;â‘¡Industrial cluster capability upgrading should based on the integration of complementary knowledge and supplementary knowledge;â‘¢Knowledge integration need to break through the current network space and structure so as to realize dual embeddedness of both local knowledge network and ultra-local knowledge network. This logic thread is innovative.(2) Innovation in key constructs. Three key constructs are comprised:â‘ The effect of cluster firms'knowledge network dual embeddedness on innovation capability upgrading;â‘¡The effect of clustered firms'knowledge network dual embeddedness on integration of complementary knowledge and supplementary knowledge;â‘¢the mediating effect of knowledge integration to the relation between dual embeddedness and innovation capability upgrading. These key constructs help to make the logic thread achievable.(3) Innovation in access points. The key constructs listed above are built on the following access points:clustered firms' innovation capability upgrading---when explore the breaking point in industrial clusters'transformation and upgrading;â‘¡cooperation between clustered firms and two different knowledge agent, i.e., local firms and ultra-local firms (dominant firms in value chains and KIBS respectively)---when analyze inner process mechanism of knowledge networks'dual embeddedness;â‘¢integration of complementary knowledge and supplementary knowledge---when analyze functions of knowledge networks'dual embeddedness.(4) Innovation in research context---industrial clusters context. There is no denying that clusters firms'innovation capability upgrading not only remarkably get affected by collective path-dependence because of collective learning and knowledge spills within a cluster, but also get affected by firms'individual learning actions which helps to break original paths and lead to heterogeneous dynamic capability. Given this, trying to explain network links and innovation capability upgrading in such a particular context is of great significance.