Relationship Among Firm Network, Organization Learning And Firm Performance Under Dynamic Environment

Facing serious competition, organizational Learning capability becomes a key factor for firm to obtain competitive advantage and enhance the ability to adapt to changing competitive environment. More and more firms form alliances and inter-organizational networks in an attempt to improve organizational learning. On the basis of related literature, this paper tries to analysis how firm network characteristics affect organization learning ability and the firm performance in the dynamic environment of market, technology and information.This paper summarizes 4 characteristics of firm network including extensiveness of out-ties, relational embeddedness, knowledge/resource redundancy and global scope of out-ties. These characteristics will be examined respectively in organization networks which constitute firms and its supplier, distributors, customers, firms in other industry, financial and research organizations. This paper wants to deeply reveal the relationship among network relationship, organization learning and firm performance through introducing variables measuring dynamic market, technology and information.This paper will firstly arrange related literatures on organization learning in order to clarify some definition and relationship among firm network, organization learning, firm performance and dynamic environment. Then, theoretical framework and research hypotheses are proposed. Finally, literature framework and research hypotheses are examined by empirical research on hi-tech firms in Jinan, Shandong Province. Conclusion's application and its practice effect in setting up and implementing of firm strategy will also be discussed.This paper adopts methods of literature searching, theoretical deduction, questionnaire and econometric model to analyze and discuss. In the aspect of theoretical analysis, we search, read and analyze literature in order to master the current situation and methods of related domestic and international study. And by using comparative study and theoretical deduction, we form our research idea, concept model and research hypotheses. Questionnaire method is adopted in data collection, which constitutes procedures of questionnaire design, pre-test, questionnaire adjust, formal questionnaire and so on. These procedures ensure the rationality of investigation process and enhance the validity of investigation data. To test the validity of theoretical framework and research hypotheses, we introduce statistical analysis methods, such as factor analysis, regression analysis and statistical hypothesis testing and so on. All statistical analysis is carried out by the statistical analysis software SPSS.This paper makes contribution in 3 perspectives. First, this paper develops firm network theory. Firm network characteristics are depicted in 4 perspectives: extensiveness of out-ties, relational embeddedness, knowledge/resource redundancy and global scope of out-ties. How these 4 characteristics affect firm performance through organization learning is also deeply studied. All of these can help enrich and develop research on firm network and organization learning. Second, to reveal the relationship among firm network, organization learning and firm performance, this paper develop the research scales of embedded extent of relationship, redundancy of knowledge and resources, organization learning and firm performance. Third, empirical research on hi-tech firms in Jinan will help develop organization learning in the perspective of industry and proves dynamic environment's impact on the organization learning of hi-tech firms.This paper draws following conclusions:First, extensiveness and global scope of out-ties are not the key factors to enhance firm's learning ability. Hypothesis test shows that the positive impact of global scope of out-ties on firm's learning ability have not been supported. And the hypothesis that extensiveness of out-ties has the positive impact on firm's learning ability has only been partially supported. That is, the establishment of the firm network will not necessarily enhance the firm's learning ability. The promotion of firm's learning ability depends on the depth and quality of information and knowledge, which can not be achieved just by expanding the scope of firm network and contacting more organizations. In addition, if the firm achieves too much information and knowledge, it may leads to adverse effect of information overload, which may greatly reduce the firm's information processing efficiency and impose negative impact on the promotion of learning ability. Obviously, extensiveness and global scope of out-ties both have positive and negative influences on the promotion of learning ability.Second, relational embeddedness, knowledge/resource redundancy has an important effect on the firm's learning capability. Studies shows that relational embeddedness has significantly positive influence on the learning ability's enhancement, but the knowledge or resources redundancy has remarkable negative influence. Only when firm is quite close with other organizations could it possibly achieves access to the information and knowledge with higher depth and quality, which is beneficial to the improvement of learning ability. But the unnecessary redundant knowledge and resources will greatly reduce the firm's information processing efficiency and cause resources waste excessively, which does no good to the improvement of learning ability.Third, the firm's learning ability is vital to improve firm performance. Research shows that firm's learning ability has significantly positive effects on performance. This also explains why more and more firms lay emphasis on organizational learning and eager to develop learning organization with the development of organization learning theory. The improvement of firm's learning ability is a long-term, systematic and strategic project. When firm realizes this point, it will make more achievement in innovation, which is real important to improve firm performance and competitive advantage. The research also confirms that organization learning plays an intermediary function in the relations between relational embeddedness, knowledge/resource redundancy and firm performance. This tells firms that by establishing of relationships - in particular those possessing close relationship and avoiding resources or knowledge redundancy, firm can enhance the learning ability so as to improve firm performance.Fourth, the dynamic environment has the important influence on the relations between firm network and learning ability, as well as firm performance. Dynamic environment can obviously strengthen the relations between firm network and learning ability. Such role also obtains partial confirmation in the relations between knowledge or resources redundancy and learning ability. When environment dynamic is stronger, firm has more expectation to establish network relations with complementary organizations so to enhance their learning ability. However, dynamic environment doesn't obviously strengthen the relations between extensiveness of out-ties and learning ability, as well as the relations between global scope of out-ties and learning ability.