The Impact Of Network Competence On Service Innovation Performance Under Low Trust Level

Service innovation has been the solution to enterprise survival and developmentissues in an important way. However, because of the lack of the resources ofinnovation in the enterprise, success rate of service innovation is low very much. Theenterprise's own resources can not meet the demand for service innovation, therefore,the relation network has become a new way to research service innovation. Althoughstudies have shown that corporate network competence could produce positive effectson innovation performance, there are scholars still believed that a strong control overcorporate network would adversely affect the enterprise. Thus, in the context ofChina's low-trust environment, it should be studied that if obtaining resources throughthe network can help companies improve service innovation success rate. In addition,the enterprises that have similar network competence are significant difference in arange of performance, it is necessary to study the conditions for existence of thisdifference.To solve this practical problem, a conceptual model of the impact of networkcompetence on service innovation performance was bulit. Based on service innovation,corporate network theory, and organizational learning theory, author gave thestructure hypothesis on service innovation performance and network competence, andthe relation hypothesis between network competence and service innovationperformance in low trust level, and a mediating effect relation hypothesis of theorganizational learning capacity between network competence and service innovationperformance. In this paper, author used empirical research method, collected thesample data through interview and questionnaire survey research methods, used PLSand hierarchical regression to verify the research hypothesis and then explained anddiscussed the results.This major research findings and innovation is reflected in the following threeaspects:1. Proposed and verified the four-dimensional model of service innovationperformance. The model consists of two revenue-financial indicators (financial targets,business growth) and two non-financial income indicators (customer targets, internaltargets). Because of the characteristics of services and service innovation, there aresome differences between the service innovation performance structure and other innovative performance structures. The one hand, this conclusion has enriched thetheory of service innovation performance, on the other hand, it can provide a basis forenterprises to evaluae the success of innovative activities.2. Proposed and verified the four-dimensional model of network competence underlow trust level. The model consists of network planning, relationship management,resource identification and acquisition, management qualification. Based on theanalysis of the unique nature of enterprise networks under low trust level, somecontexts on planning, identifying, and utilizating the resources in a low trust lvelnetwork should be included in network competence. On the one hand, this conclusioncan expand the network theory to have the applicability and explanatory under lowtrust level, on the other hand, it can help enterprises to understand how to upgradetheir own networks under low trust level.3. Verified that network competence is positively related to service innovationperformance, and organization learning capacity is an important moderating variablebetween network competence and service innovation performance, that meanorganization learning capacity can strengthen the positive impact of the corporatenetwork competence on service innovation performance. On the one hand, thisconclusion has enriched the service innovation performance influencing factors, on theother hand, by verifying the moderating effect of organization learning capability, itenriched the relation theory between network competence and service innovationperformance, and provided some clues to improve service innovation performance forenterprises'practice.