Enterprise Network Research On Technological Innovation Performance

In the era of knowledge-based economy, the core competence of a company relies more and more on its innovation ability. Meanwhile, with the forthcoming of network economy, to acquire and apply new knowledge through external network and internal network of a firm can largely determine the firm's innovation ability. Therefore, it bears great significance to study the mechanism of how a firm's network influences its technology innovation performance.In this research, based on the relevant study of firm networks, we put forward the conceptual framework of firm networks positively influencing technology innovation performance while being moderated by its absorptive capacity. We systematically analyze the respective relationship between external network strength, external network size, external network position, internal network strength, absorptive capacity and technology innovation performance, and also we lay emphasis on the moderating effect of absorptive capacity.Empirically, this research was conducted with a questionnaire effectively distributed among 125 firms. We apply factor analysis and Hierarchical Regression Analysis (HRA) to test the hypothesis raised in the conceptual framework. Then after the analysis of networks, absorptive capacity, and technology innovation performance through a dynamic view, we come to the following conclusion:(1) A firm's external network, with three dimensions of strength, size, and position included, has a positive impact on its technology innovation performance.(2) A firm's internal network, including the FCT (frequency, closeness, and time) and SLC (sincerity, loyalty, and commonness) of the relationship among different functional departments, has a positive impact on its technology innovation performance.(3) A firm's absorptive capacity is positive related to its technology innovation performance.(4) A firm's absorptive capacity has a moderating effect on the relationship between the firm's networks and its technology innovation performance.Finally, combined with the case of soft magnetic industry cluster in Haining, Zhejiang Province, we further discuss the dynamic relationship between firm networks, absorptive capacity, and technology innovation performance, and suggest that a firm should also invest on its absorptive capacity while expanding its networks.