Research On The Impact Mechanism Of Open Innovation On Firm Performance From The Perspective Of Network Capabilities

The modular manufacturing network provides an opportunity for Chinese manufacturing enterprises to integrate into the global value chain,and in the meantime, to accumulate capital and knowledge resources.However, for most of Chinese enterprises that participate in the global manufacturing network with models of OEM and ODM, it is easy to fall into the embedded deadlock when the technology is replaced and upgraded. Therefore, how to develop independent technological innovation and change the existing international division of labor which is dominated by transnational corporations, so as to promote the social and economic development of China is the strategic proposition that Chinese manufacturing enterprises have to confront.The theory of open innovation, which is the current research hotspots in the field of technology innovation, advocates integrating internal and external resources, strengthening cross-organizational innovation and collaboration, provides a new path of development for the enterprise transformation and technology upgrading. In the case of China,although the existing research investigates the depth and breadth of open innovation and its influence on the competitive advantage of enterprises,the research on the mechanism of open innovation modes impact on firm performance is still insufficient.In order to promote Chinese enterprises' integration of different heterogeneous resources in the global innovation network, and speed up the upgrading of technical level, this paper focuses on two major types of open innovation model, which are inbound and outbound open innovation,try to resolve the basic question of "how open innovation affects firm performance", follow the logical chain of " strategy-behavior-performance", establish the theoretical framework of "open innovation -network competence - enterprise performance" , based on the perspective of network competence. Specifically, this paper investigates three issues as follows: (1) what is the relationship between opem innovation and enterprise performance? (2) What is the mechanism of open innovation impact on firm performance? (3) What are the effects of different situational factors on this mechanism?To solve above problems, combining with theories of open innovation, resource based view and network competence, this paper constructs the model of relationship between open innovation and firm performance, including the main effect of open innovation and enterprise performance, the mediated effect of network competence, and the moderated effect of learning orientation and network spillovers. Through the questionnaire survey and empirical analysis of 237 manufacturing enterprises in China, the main conclusions are as follows:First, both of the enterprise's inbound open innovation and outbound open innovation have a significant positive impact on firm performance.The result of this paper shows that integrating different resources, such as knowledge and market resources, can bring good market performance for enterprises, which is a beneficial supplement for current research about open innovation. With the continuous improvement of the level of technological innovation in China's enterprises, using different open innovation models to enhance the level of competitiveness is already a common means of technological innovation.Second, network competence has a positive impact on the performance of enterprises, and plays the mediating role in the relationship between open innovation and firm performance, specifically,this paper divdes network competence into three dimensions, namely network vision, network construction and network management, all of three dimensions play the part of the intermediary role between open innovation and firm performance.The conclusion of this paper shows that,the stronger the network competence , the easier firms could earn benefits from open innovation.Third, network spillovers positively moderates the relationship between open innovation and firm performance, while learning orientation only moderates the relationship between inbound innovation and firm performance. Based on the discusstion of relationship between open innovation and corporate performance in the perspective of network competence, this paper further studies the moderating role of network spillovers and learning orieatation, and finds that knowledge-rich environment is beneficial to the enterprise's open innovation practice.This paper conducts three theoretical innovations as follows:Firstly, based on the logical chain of " strategy-behavior-performance", this paper reveals the mechanism of open innovation impact on firm performance from the perspective of network competence.Although scholars have done a lot of research about open innovation based on RBV, seldomly build up linkages between resource and capability, and could not ecplain the whole process form adopting open innovation strategy to achieving firm value. This paper constructs linkages among theories of open innovation, resource based view and network competence, and points outs that open innovation relies on network competence, which can integrate and capture resources from innovation network, to earn firm performance, supplyments current research of open innovation.Secondly, this paper clears and definites both inbound and outbound open innovation have positive impact on firm performance, currently,comparing to outbound open innovation, scholars have done much more research about inbound open innovation, and haven't made conformance conclusion about the relationship between open innovation and firm performance yet. This paper analyzes the relationship between open innovation and firm performance, and further investigates the mediated role of network competence and moderated role of learning orientation and network spillovers, the conclusion of this paper enlarges the range of application of open innovation theory in China.Thirdly, this paper further finds that learning orientation positivly moderates the relationship between inbound open innovation and firm performance, but dose not influence the relationship between outbound innovation and firm performance; network spillovers positively moderats the relationship between open innovation and firm performance.Currently, most research intend to use operational-level factors and environment turbulence as situational factors, seldomly considers about strategic-level factors and function of knowledge flow, Therefore, this paper chooses learning orientation and network spillover as an endogenous and exogenous situational factors into the framework of open innovation performance mechanism, extends the depth and breadth of the existing open innovation research, and support provides the enterprises'strategic decision according to their endogenous and exogenous conditions.