Study Of The Impact Of Small And Micro Enterprises Cluster's Network Embeddedness On Product Innovation Performance

Small and micro enterprises are the main force to promote our country's economic growth and social stability. With the social development, small and micro enterprises are facing more complex social environment. And during the development process they have to deal with the growing number of problems. The first problem of the small and micro enterprises need to solved is that seize the market by innovative product. Before finishing this target, the enterprises should grasp the market trends, customer needs, and seize the opportunity.In the academic field, more and more scholars to study the network organization and the related theory. They gradually agree that enterprises as individuals are not independent, contrary they are embedded in the network. Network embedding theory provides a new perspective for the development of small and micro enterprises. Network embeddedness have an important influence on survival and development of enterprises. It can be explained by the scale of network, enterprise position in the social network, the degree and length of time about the contact with the cooperative enterprise. The study concluded that the network embeddedness along with the enterprise's life. And the category and the degree of the network embeddedness have a different effect on the development of enterprises.Dynamic capabilities theory point out the enterprise sustainable development power source from the strategic direction. It emphasizes enterprises use a variety of means to obtain and restructure resources in a rapidly changing technological environment and competitive market. And the ability have an important impact on enterprise innovation. This is the unique nature and the importance of the dynamic capabilities raising a wide range of academic research. From the definition of dynamic capability, we can find that the research can explain the enterprise how to adapt to the volatile market based on corporate strategy. The dynamic capability includes external resource acquisition ability and the ability of integration and reconstruction. And we know that new resources have an important influence on product innovation, so it is worth to do further research about the relationship between dynamic capability theory and product innovation performance.This paper select small and micro businesses cluster in Jiangsu as the research object. We need to know about the development status of enterprises and analysis the relationship between network embeddedness, dynamic capability and product innovation performance. It can provide a reference to enrich the related theoretical research and empirical research. This paper analyzes the relationship based on the review of the embeddedness, dynamic capability and product innovation performance theory, then constructs the theoretical model of the network embeddedness, dynamic capability and product innovation performance, and put forward the research hypotheses. This paper tested the research hypothesis using the questionnaire collected data. The paper test to the conclusions of the research through empirical analysis. First of all, verify the impact of the SMEs'network embeddedness on the product innovation performance. Data analysis results show that the SMEs'network embeddedness has a direct impact on the product innovation performance, the two dimensions of network embeddedness are relational embeddedness and structural embeddedness. They have the significant influence on product innovation performance. Secondly, positive effect of dynamic capabilities on product innovation performance has been confirmed. The dynamic capability ability has two dimensions, including the ability to identify opportunities and the ability to use opportunities. And they have a positive effect on product innovation performance. Thirdly, the paper verified the SMEsr dynamic capability has mediating effects on the relationship between network embeddedness and product innovation performance.Through the analysis the relationship between the network embeddedness, dynamic capability and product innovation performance of small and micro enterprises, we can find two sides. On the one hand, the analysis revealed the network embeddedness influce product innovation performance by dynamic capability, and enrich the related theoretical and empirical research, it can help to further clarify the essence of network embeddedness, dynamic capability and product innovation performance. On the other hand, this analysis provides some countermeasures for the development of small and micro businesses.The small and micro enterprises need to do someting to develop. Firstly, enterprises to pay attention to the network embeddedness. Secondly, we should attach importance to the promotion of the dynamic capabilities. In the increasingly fierce competive market, the small and micro enterprises need to seize the opportunity, then use the dynamic ability to innovate to deal with market risk and customer demand changes. The small and micro enterprises should seek development in the challenge, then promote the harmonious development of society and economy.