A Study On The Relationship Between The Subsidiary Network Embeddedness And Its Performance

In the structure of the national economy, the rapidly rise of the third industry produce a large number of small and medium-sized enterprises. The changes in the market environment bring both opportunities and challenges for the traditional industry. The traditional industries can take this opportunity to change its mode of production and improve technological innovation ability, meanwhile, the new competing ways also brought great challenges for them. If the company want to stand out from the crowd in the new market environment, they need to constantly update technology, update the organizational structure and mode of production, reform the internal management structure and the ways of external exchange. Enterprises need to get access to the required resources in various ways. The relation network among enterprises becomes very important for the development of enterprises, so how the firm network embeddedness influence corporate performance has become the focus of the study.This paper firstly reviewed the theory and literature, then research the influence of network embeddedness to firm performance based on the resource-based theory and resource diffusion theory, and based on the analysis of industry background and development status, we introduces two variables:the resource acquisition and joint value creation, to proposed that the joint value creation and resource acquisition plays an intermediary role between network embeddedness and firm performance.On the collection and analysis of relevant literature, The network embeddedness is divided into structural embedding and relation embedding, Resource acquisition is divided into knowledge resources acquisition and information resources acquisition, the joint value creation is divided into two dimensions:joint planning and joint solving. This paper proposes the research model, and puts forward the hypothesis, through issued questionnaires to the high-level managers of manufacturing industry enterprises in Tianjin to collect relevant data, using SPSS to conduct reliability and validity testing, and using AMOS to verify the hypothesis model.The results show that:the network embeddedness has a significant impact on its performance in the machinery manufacturing industry, resource acquisition and joint value creation plays an intermediary role between network embeddedness and performance.The research results put forward relevant suggestions for the management of machinery manufacturing enterprises. The management of the enterprise should based on their own situation to communicate to the subsidiary company, to achieve the group’s internal knowledge sharing and synergy effect.