Enterprise Network And Innovation Types

This paper explores the relationship between enterprise network (intensity and size) and innovation types (product innovation, process innovation and management innovation). Then, we add two types of contingencies, absorptive capacity (inner) and environmental dynamism (outer), to explore the influence of enterprise network on innovation. We raise three questions after doing a literature review: Firstly, what are the enterprise's innovation types? Are they affected by network intensity and size? How does this happen? Secondly, is the relationship between enterprise network and innovation moderated by absorptive capacity? Thirdly, what is the influence of enterprise on network in dynamic environment?Using empirical data drawn from a questionnaire survey of firms in Guangdong province, we find that: Firstly, firms in Guangdong are mostly good at product innovation, process innovation and management innovation are secondary. Network intensity has a positive impact on all the three innovation types, but mostly has a positive impact on product innovation, then is the management innovation, the last is the process innovation. Network size also has a positive impact on all the innovation types, but mostly has a positive impact on management innovation, then is the product innovation, the last is process innovation. Secondly, the relationship between enterprise network (network intensity and size with suppliers, customers, other firms, government departments, science partners such as universities and finance partners such as banks) and innovation is not moderated by absorptive capacity. Thirdly, when the environment is highly uncertain, network intensity has a negative impact on product innovation, which means weak ties will be benefit for product innovation. While network intensity has a positive impact on management innovation, which means weak ties will not be benefit for management innovation. And network size has a negative impact on product and process innovation, which means a small number of ties will be benefit for the product and process innovation.Under dynamic environment, we should develop weak ties with a small number of firms for product innovation; develop a small number of ties for process innovation and strong ties for management innovation.