Network Capacity, Innovation Network Research And Innovation Performance Relationship

Under the background of networking of firms' organization and innovation pattern, how to improve firm's innovation performance (or innovation success) is an interesting question. Based on the theory analysis, we adopt the research methods of field discussion, questionnaire, simulation and case study, and explore how high-tech firm can achieve networking innovation effectively. Our research mainly concerns the three topics: (1)the characteristics of effective innovation network of firms, and its impact mechanism on firm's innovation performance; (2)the impact of network competence on firm's innovation network; (3)the core influencing factors of firm's network competence.In the research topic one: from the two aspects, i.e. "quality" and "quantity", of innovation network, combining some methods about measuring network in the sociology, we abstract six dimensions: strength of tie, duration of tie, quality of tie, scale of network, range of network and heterogeneity of network.In the empirical test of innovation network of focal firm and its innovation performance, after controlling the firm's size and technological grade, we find that strength of tie, duration of tie, quality of tie, scale of network, range of network and heterogeneity of network are all have an significant impact on the focal firm's innovation performance. It draws a conclusion that effective innovation network embody significant characters both in the "quality" and in the "quantity" aspects. On the one hand, it supports some theories about network character's influencing outcome of actors in the network, such as the advantage of strong tie(Granovetter,1973; Gulati, 1995a; Krackhardt,1998), relation governance (Granovetter, 1985; Parkhe,1991; Hoffman, 1994; Blount,1995) and social network(Nadel,Barnes,1954) from the view of technological innovation. The validity of innovation network explains the quality, richness and ampleness of innovation resources, such as reliant and various network ties help to improve the veracity and speed of market information, and the reliability and applicability of technology, subsequently improve the innovation performance.On the other hand, the validity of innovation accounts for the redundance and repeat of nework ties are also valuable to the firm's innovation success, and support the view that redundant resources do good to firm's innovation performance(Fang, 2003), for some kind of network characters, such as the strength of ties, duration of ties, nework scale and network range embody the redundance and repeat of nework ties, and explain the redundance of innovation resources acquired through innovation network. The redundant resources of firm often play an role of cushion coping the change of firm's environment, which reduce the impact form the change of environment(Cyert,March,1963; Bourgeois, 1981; Cheng,Kesner, 1997). While, the characteristics of high-tech industry just embody the high degree of market turbulence, technological turbulence, and competitive intensity. So, with some redundant and repeat network ties, high-tech firms can enhance their adaptability to the turbulent environment of high-tech industry, reduce their dependence to some special partners, and do good to their innovation activities.When making the firm's size as the grouping variable, in the sample of small size firms, only quality of tie, scale of network and heterogeneity of network have an significant impact on the innovation performance; While in the sample of large size firms, the six dimensions are all have significant impact on the focal firm's innovation performance. For the strength of tie has not significant impact on the small firm's innovation performance, it may be that although frequent interact helps gets some innovation resources or perceives innovation pressure, it disperses the limited internal resources of small firms, and make some negative impact to them. So, the strength of tie has not significant impact in the whole; For the duration of tie has not significant impact on the small firm's innovation performance, it may be that although long term interact helps gets some innovation resources or opportunities, it also reduce the agility of small firms, and make some negative impact to them. So, the duration of tie has not significant impact in the whole; For the range of network has not significant impact on the small firm's innovation performance, it may be that although more kinds of interactive relations helps gets more innovation opportunities or perceives innovation pressure, it also occupy some internal resources of small firms, which are also important to small firm's technological innovation, and for the luck of integration competence, restrict the effect of these innovation opportunities. So, the range of network has not significant impact in the whole.As for the research about the impact mechanism of innovation network to innovation performance, we construct four mediators: innovation resource, innovation opportunities, innovation wish and innovation pressure. In the whole or group sample, we all find that the four mediators play a significant mediation effect.Innovation resources include patent admission, technology, fund, equipment and R&D personnel, which can be acquired through innovation network as platform or tool. Innovation network also help inspire internal redundant resources or enhance the efficiency of utilizing latent resource and the range of integrating innovation resources. Innovation network also help focal firm get more innovation opportunities and their combination. Further more, innovation network reduce the difficulty of innovation and separate the risk of innovation, which advance the expectation of income of innovation, which help focal firm step up innovation desirability. Through interacting with other innovation partner, focal firm can make an impersonal appraisement of itself, get exact consult form others, and perceive sustaining pressure of innovation.In the research topic two: we use the simulation method analysis the influencing mechanism of network competence to network characteristics, and make an empirical test of impact of network competence on innovation network and innovation performance.In the simulation model, we use the network competence as the heterogeneity of actor, and find that through influencing income of interaction, network competences of actors have an impact on the actors' network characters of their subset. This finding supports that focal firm's network competence would have an impact on the characters of their egocentered innovation network to some extent.In the empirical test of network competence of focal firm and its innovation network characters, after controlling the trait of entrepreneurs and firm's size, we find that network competence have an significant impact to strength of tie, duration of tie, quality of tie, scale of network and range of network. This can be explain that, for network competence consist of task execution and qualification, in the process of interaction with others, with high level of qualification and high efficiency of task execution, focal firm can enhance the probability of establishing new ties with partners successfully, get the reorganizations of innovation partners continuously, increase the probability of cooperation with current innovation partners extensively, help attract new potential innovation partners to build a new tie, lessen the conflict with partners, and influence the characters of innovation partners subsequently.When controlling the impact of firm's size and technological grade to innovation performance, network competence have an significant impact to strength of tie, duration of tie, quality of tie, scale of network, range of network and innovation performance. This can be explained that, with high degree of qualification performing task of network management would get important market information directly, and induce the market orientation of internal innovation process(Han et al., 1998). Networking activities can also make a platform help sell new product to non-innovation partners. Some network management qualification, Such as social qualification and management skill can also help improve internal innovation process.In the research topic three: based on the theory of firm's competence, we conclude some important factors improving firm's network competence. In addition to the access to resources, integration of communication structure, openness of corporate culture, and network orientation of human resource management, we introduce the organizational learning.Form the results of empirical test, access to resources, integration of communication structure, openness of corporate culture, network orientation of human resource management and organizational learning all have an significant impact on firm's network competence. The size of path coefficient all are at the same level. So, enhancing network competence need considering the five core factors together.The five factors represent resources base, management method, organizational structure, firm's culture and learning orientation, and verify that network competence is a kind of competence belongs to the whole firm's level. In addition, based on the firm's competence, introducing organizational learning into factors of improving network competence, and confirming its function of improving network competence, enrich the explanations about theory of approaches or means enhancing network competence.