| Along with the rapid growth of information technologies and globalization,and the economic turbulence caused by the recent world-wide financial crisis,the environment for firms is becoming more complex and dynamic.How to tackle the challenge brought by dynamic environment or how to utilize the opportunities provided by dynamic environment has become the key question of strategic management for most firms and focal topic for academia.Based on theories like resource-based view and evolution theory,the theory of dynamic capabilities argues that competitive advantages in dynamic environment can only be attained through innovative integration,building and reconfiguration of resources or competences and gaining Schumpeter Rents.The theory of dynamic capabilities is capable of explaining how and why certain firms can attain competitive advantages in fast-changing and uncertain environment.However the concepts and definitions in existing literatures are so broad and vague that dynamic capabilities are difficult to observe and empirical studies are rare.Knowledge resources are widely considered as the most valuable ones among all kinds of resources.The school of knowledge-based view conceptualizes firms as heterogenous,knowledge-bearing entities and deems that capabilities of firms are integration of knowledge.Meanwhile,building innovation networks has become a key approach to acquire knowledge and improve innovation performance.Especially, network embeddedness is widely believed to have significant influence on technological innovation.However in existing literatures there are no clear answers to how network embeddedness impact on innovation performance and the relationship between network embeddedness and dynamic capabilities.Based on the theory of dynamic capabilities,knowledge-based view and network embeddedness,this paper proposes four research questions as follows:(1) How to define dynamic capabilities from the perspective of knowledge-based view? What are elements of knowledge-based dynamic capabilities? How to evaluate knowledge-based dynamic capabilities?(2) How does network embeddedness impact on knowledge-based dynamic capabilities?(3) How do knowledge-based dynamic capabilities impact on innovation performance?(4) How do environment dynamics impact on network embeddedness?Using both theoretical and empirical methods,and qualitive and quantitive methods,this paper conducts three sub-studies to analyze and answer these questions.Sub-study 1:The concept,constructs and evaluation of knowledge-based dynamic capabilities.On basis of literature review,this sub-study identifies a series of conceptual and operational problems in existing studies.Then the definition of knowledge-based dynamic capabilities is presented and the functions and representation of three kinds of constructs,namely knowledge acquisition capability, knowledge creation capability and knowledge integration capability,are discussed. The comparison of knowledge-based dynamic capabilities and related concepts is also conducted.Afterwards,a scale for knowledge-based dynamic capabilities evaluation is designed by using normative method of scale building and the reliability and validity of this scale are also examined by using questionnaire survey and statistical methods including exploratory factor analysis,confirmatory analysis and reliability analysis.Sub-study 2:The relationship between knowledge-based dynamic capabilities, network embeddedness and innovation performance.By conducting detailed and normative exploratory multi-case studies,this sub-study proposes hypotheses on the relationship between knowledge-based dynamic capabilities,network embeddedness and innovation performance.Then these hypotheses are refined on the basis of literature review and a conceptual model is put forward.Finally,the model and hypotheses are tested by questionnaire survey and statistical methods including exploratory factor analysis and structural equation model.Therefore the mechanism of how network embeddedness impacts on innovation performance through knowledge-based dynamic capabilities is revealed.Sub-study 3:The relationship between environment dynamics and network embeddedness.Similarly,hypotheses on the relationship between environment dynamics and network embeddedness are put forward based on exploratory multi-case studies.Then these hypotheses are refined and a conceptual model is put forward through literature and theoretical analysis,especially the discussion on the logic that environment dynamics may influence on the value and condition of using knowledge-based dynamic capabilities and hence stimulate or force firms to reconfigure embeddedness.Finally,the model and hypotheses are tested by questionnaire survey and statistical methods.Hence the influence of environment dynamics on network embeddedness is revealed and the mechanism of how environment dynamics impacts on knowledge-based dynamic capabilities through network embeddedness is also crystallized combined with the conclusion of sub-study 2.On the basis of above studies,this paper reaches conclusions and viewpoints as follows:(1) Knowledge-based dynamic capabilities can be expressed as "the capabilities to acquire,create and integrate knowledge in order to sense,tackle,utilize and initiate market change" and comprise three constructs e.g.knowledge acquisition capability, knowledge creation capability and knowledge integration capability.(2) The structural and relational embeddedness of firm's alliance network has different impacts on different knowledge-based dynamic capabilities.Particularly,the diversity of partners has significant and positive influence on knowledge integration capability;Trust,joint problem solving and commitment have significant and positive influence on knowledge acquisition capability;Joint problem solving also has significant and positive influence on knowledge integration capability.(3) Knowledge integration capability has significant,positive and direct influence on innovation performance.Knowledge integration capability also functions as a whole mediator in the impact of knowledge acquisition and knowledge creation capabilities on innovation performance which means knowledge acquisition and knowledge creation capabilities impact innovation performance via knowledge integration capability.(4) Technological environment dynamics has significant and positive influence on structural and relational embeddedness.Particularly,technological environment dynamics has significant and positive influence on diversity of partners; Technological environment dynamics also has significant and positive influence on trust,joint problem solving and commitment.The main theoretical innovation and contribution of this paper can be summarized as follows:(1) The definition of knowledge-based dynamic capabilities and identification of their constructs in this paper make the concept clearer,the object more focused and the boundary more definite in dynamic capabilities research.This is helpful to solve problems like "too broad concept" and "hard to observe" and improve the rigour and systematism and hence promote the development of dynamic capabilities research, especially quantitative studies and the integration of the research of dynamic capabilities and knowledge-based view.(2) The exploration of the relationship between knowledge-based dynamic capabilities,network embeddedness and innovation performance reveals that different network embeddedness attributes including diversity,trust,joint problem solving and commitment have significant influence on knowledge acquisition capability and knowledge integration capability and knowledge integration capability has pivotal impact on innovation performance.Therefore,a theoretical framework-"network embeddedness-dynamic capabilities-innovation performance" is established and the "black box" of the mechanism of network embeddedness is opened.These findings may inspire future research on dynamic capabilities and innovation in the network circumstance.(3) The significant influence of technological environment dynamics on network embeddedness attributes like diversity,trust,joint problem solving and commitment found in this paper reveals that firms are not only passive actors accepting changes in network but can actively adjust their network attributes according to environment dynamics.This finding contributes to more comprehensive and in-depth understanding on network level behavior of firm in dynamic environment.
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