A Study On The Network Embeddedness, Knowledge Innovation And Industrial Cluster Competitive Advantage

With the fast updating of knowledge and information, companies will be primarily through knowledge rather than financial capital or natural resources to gain competitive advantage. To maintain the vitality of innovation, industrial cluster must rely on knowledge innovation, driven by continuous updating of knowledge and other basic resources, introduce both inside and outside the cluster new information and technologies, to avoid rigidity, and constantly promote and adjust learning ability.Competitive advantage theory has always been the focus of strategic management research. Industrial cluster competitive advantage depends not only on its internal resources have also depends on a variety of resources and capabilities which obtained from its own network embeddedness. With the rise of corporate network forms of organization and the network theory, competition and cooperation gradually become the new competition strategy. The theory of competitive advantage is also showing a trend of network convergence. At present, the use of network theory is becoming a dominant research method to reveal and understand the comprehensive formation of competitive advantage.This article analyzed the formation of firm competitive advantage in industrial cluster from the perspective of network embeddedness and concluded that moderate network embeddedness can enhance firm competitive advantage by knowledge innovation. Network embeddedness mainly refers to the network in the industrial clusters between enterprises and the structure of the embedding and embedded. This concept of embeddedness follows Granovetter study. Network embeddedness is contained of relational embeddedness and structural embeddedness.The growth of many successful companies showed that through the network of embedded enterprise collaboration, enterprises in the network capacity for the accumulation of knowledge and to enhance innovation capacity, and gradually achieve a strategic evolution, and thus can enhance the process of strategy to win a sustainable competitive advantage.At last, this research analyzes the result in deeply and tries to give some advises and suggestions to the development of industrial cluster.