Evolution Of Local Industrial Network: Theoretical Analysis And Empirical Research Based On Dynamic Capabilities

Industrial network is a network system formed by firms' combination among intra-industry or inter-industry.The improvement of local industrial network plays a significant role to regional economic development.While local industrial network promotes regional economy,its own development encounters some problems,such as low added value and weak international competitiveness.How to strengthen the dynamic capabilities and enhance the international competitiveness of our local industrial network becomes a hot issue among scholars.By analyzing influencing factors,inner mechanisms and effects of local industrial network evolution,the paper tries to discuss the problem through the change of network and firm in dynamic capabilities,and explores ways to upgrade local network and enhance the competitiveness.In the theoretical part,this paper analyses network actors,research dimension, influencing factors,inner mechanism and effects of industrial network evolution by using dynamic capabilities theory,firm growth theory,self-organizing and evolutionary game theory.Contractual relationships,competition and cooperation relationships,trust relationships are three main relationships among industrial network actors.From dynamic capabilities perspective,the evolution of industrial network performances evolution of firm dynamic capabilities(micro-dimension) and network dynamic capabilities(macro-dimension),it is the result of co-evolution.Firm's motivation and objective factors affect network evolution,controlling network is used to represent motivation,while environment and resources represent objective factors.Firm's action illustrates the inner mechanism of network evolution,and industrial network evolves with the competitive and cooperative behavior.Evolutionary Game Analysis showed that industrial network may become more stable or unstable under the impact of competitive and cooperative behavior.With firms' growth,industrial network evolves simultaneously and network and firm dynamic capabilities will also be upgraded.Based on theoretical analysis,the paper brings up three hypothesizes about local industrial network evolution.In the empirical part,we test for these hypothesizes based on questionnaire of Dongguan IT industrial network.Main conclusions are concluded as follows:Firstly,firm's motivation and objective factors may affect the evolution of local industrial network.Firm's seeking of network controlling power has significant positive effect on resource obtaining capability,resource disposing capability,observing environment capability,organization flexibility capability,and R&D capability,but has not distinct effect on resource integrating capability.Resource level has significant positive effect on resource integrating capability,observing environment capability and R&D capability.Environmental factor has significant positive effect on all of three aspects of network dynamic capabilities.Secondly,firms' interaction results in local industrial network evolving.Competitive behavior has significant positive correlation on both network and firm dynamic capabilities.Cooperative behavior has significant correlation on resource obtaining capability,resource disposing capability,organization flexibility capability and R&D capability.Thirdly,network and firm dynamic capabilities will be enhanced with firm's growth on the whole.Among them,resource obtaining capability,resource integrating capability and observing environment capability have shown significant change with firms' growth,while the change of resource disposing capability,organization flexibility capability and R&D capability haven't been verified. Fourthly,the evolution of Dongguan IT industrial network is not significant which means that dynamic capabilities of IT firms in Dongguan is weak,IT network has not headed towards top grade in value chain and has not achieved strong international competitive advantage.