Research On Relationship Between SMEs’network Capabilities And Innovation Performance

As a "world factory", labor-intensive industries seriously hinder the development of Chinese independent innovation capability, and the advantage of cheap labor and resources as well as energy is no longer a reliable guarantee for economic development in the21st century. Enterprises no longer rely solely on internally development to occupy the market, but get innovative edge by creating an extensive social network relationship with external knowledge and information flow. In this context, any business can be actively or passively embedded into a variety of complex network relationships, resulting that the value of the enterprise depends largely on its ability to integrate internal and external resources as well as knowledge. Enterprise overturns the traditional growth model towards the value network under the new context, and commits to building interdependent and diverse relationship with suppliers, customers and competitors and other external organizations so as to seize potential opportunities to create competitive advantage, which indicates that network capacity of enterprises in the era of knowledge economy has become an important way to improve innovation performance. Meanwhile, due to the dynamic characteristics of the external environment, companies cannot quickly and efficiently respond to all the challenges of the environment when handling and coordinating external networks, especially when the resilience of SMEs is limited by their ability. In order to improve the efficiency of responding to changes in the market, companies will institutionalize the past experience or behavior patterns so as to shorten the time to develop strategy when dealing with similar challenges. This action certainly achieves the expected goal in the short term, but from a long-term perspective, it inhibits innovation and long-term development of enterprises. Corporate external network requires companies to respond effectively to the external environment and establish a reasonable relationship to integrate external resources and capabilities, but companies tend to follow past experiences, customs and practices in response to external changes (called organizational inertia), leading companies cannot accurately grasp the market dynamics and deviate market demand and ultimately affect the overall innovation performance.Combing with the literature in the past, it can be found many scholars have explained the relationship between the enterprise network capability and innovation performance as well as the role of organizational inertia in large enterprises from different angles, but few will introduce action routines or organizational inertia, especially the inertia of SMEs into the relational model, ignoring the effect of internal inertia on innovation performance and affecting the accuracy of the mechanism between the enterprise network capability and innovation performance. To perfect the relationship between the two variables, the paper is committed to regard organizational inertia as the moderator and introduce it into the relationship research between the SME network capabilities and innovation performance, in order to provide a new idea for SMEs to overcome organizational inertia and enhance innovation performance.At first, this study identifies elements and the logical relationship of the three variables combing with the relevant domestic and foreign researches about network capability, innovation performance and international inertia. Secondly, based on the literature of the three variables, it builds the relational model about network capability, international inertia.and innovation performance and then proposes the corresponding hypothesis and designs the questionnaire combined with domestic and international classic scales. Finally, this paper takes advantages of SPSS to develop reliability analysis, validity analysis, correlation analysis and regression analysis for181screened questionnaires, and test the hypothesis.Through empirical analysis, the study results:(1) SME network capabilities and innovation performance are positively correlated. Network Vision capability, network building capabilities, relationship management and portfolio management capabilities of SMEs have a positive influence on its innovative performance.(2) Organizational inertia plays a moderate role between network capability and innovation performance in SMEs. Among the moderate role, ability extension has an significantly negative moderate effect on the relationship between network capability and international inertia, and change limitation also acts as an negative role in the relationship between them, but cognitive bias does not completely play an negative role in the relational model.This study examines the model between network capability and innovation performance from the perspective of organizational inertia, which not only deepens the mechanism of enterprise network capacity and enriches the relevant research on enterprise network capacity and innovation performance, but also provides new ideas for the innovation of SMEs.In other words, this study has important theory significance and practical significance for SMEs to use network relations to improve innovation performance.