The Research Of The Fitness Among Network Positions, Environmental Dynamics And Innovation Orientation

Over the last two decades, a new manufacture system—Global Production Networks (GPN) has been form and it open an opportunity window for Chinese local firms to integrate into international labor division system, learn technology from flagship companies and accumulate knowledge. In the recent years, as the process speeding up, the local firms begin to have the opportunity to choose their position in GPN and even to form their own GPN. Chinese local firms have more freedom and importance in GPN. This is the base for local firms to upgrade in global value chain. Thereby, how to build an appropriate network position to gain necessary resource and strategical upgrade in GPN is the key practical issue for Chinese local firms. However, the overview of related research shows that although the existing theoretical research outlined the characteristics of network position and the competitive advantage it brings up, the research on mechanism and context of how network position impacts firms' performance are still inadequate, and the relative empirical research findings also have some of the conflict.Based on the review of the relevant studies of network position, environmental dynamics and innovation orientation, focusing on "how to build an appropriate network position to enhance the performance", this paper establishes a model of the match between network position, environmental dynamics and innovation orientation. This paper also explores the following three closely related sub-questions step by step: First, what are the mechanisms of network positions on performance? Second, what impacts will be brought about on this mechanism by environmental dynamics? Finally, how do network positions match the internal innovation orientation and external environmental dynamics to enhance performance together? Empirically, this paper was conducted with a questionnaire and the data was get from 171 manufacturing firms. We apply data factor analysis and linerar regression analysis to test the theoretical model and hypothesis raised. Through the above research, some conclusions can be presented as follows: (1) Based on the relevant researches, this study divides network position into prominent position and entrepreneurial position, and examines the relationship between network position and firm's performance. The empirical results suggest that both network positions have positive impacts on performance. The prominent position has impacts on firm's acquisition of valuable information and knowledge, and establishing closed contact and trust between partners. This position can lower the cost of information searching and facilitate the transfer of tacit knowledge across organizational boundaries. The entrepreneurial position can bring useful and heterogeneous resource, especially new knowledge and information. These can enhance the innovative capability of the firms and gain sustained competitive advantage. However, this study also suggests if the firms maintain high levels on both position simultaneously, the resource and energy can be distracted which result in poor performance.(2) As the network theories developed, more and more researchers find that the effects of network position depend on environmental factors. Thus, this study hypothesizes and exmines the moderating effects of environmental dynamics on the relationship between network position and firm's performance. The empirical results suggest that the environmental dynamics has positive effects on the relationship between the entrepreneurial position and performance. That is to say the entrepreneurial position will be more associated with firm's performance when environmental dynamics is high. However, the moderating effects of environmental dynamics on the relationship between the prominent position and performance are not supported by the empirical results.(3) In the researches of alliance network, more and more studies not only focus on the relationship between network characters and performance, but also the situation in which the network characters can play an important role. Thus, this study hypothesizes and exmines the match between innovation orientation and network position. The empirical results suggest that the centrality and innovation orientation have positive interactive effect on firm's performance. When the environmental dynamics is low, the interactive effect is more positive. However, the interactive effect of the network size and innovation orientation on performance is not supported by the empirical results. The non-redundancy and innovation orientation have positive interactive effect on firm's performance. When the environmental dynamics is high, the interactive effect is more associated with performance. The heterogeneity and innovation orientation have positive interactive effect on firm's performance. When the environmental dynamics is high, the interactive effect is more associated with performance. The above conclusions illustrate that only when the firms establish appropriate network position on the basis of enternal environment and internal innovation strategies, it can bring sustained competitive advantage for firms.