Dual-network embeddedness, absorptive capacity, and enterprise innovation performance: evidence from the Chinese hi-tech manufacturing industry
by Qian Sun; Renyong Hou; Gebremichael S. Hailekiros
International Journal of Manufacturing Technology and Management (IJMTM), Vol. 35, No. 1, 2021

Abstract: Embedded innovation represents a new innovation mode. However, the relationships among network embeddedness, absorptive capacity and enterprise innovation performance remain unclear. This paper develops a conceptual framework of value chain and knowledge chain embeddedness, absorptive capacity and enterprise innovation performance to reveal the mechanism of dual-network embeddedness in enterprise innovation performance from an absorptive capacity perspective. Structural equation modelling and survey data from the hi-tech manufacturing industry in China are used. The results reveal that: 1) both value chain embeddedness and knowledge chain embeddedness enhance enterprise innovation performance, but; 2) they promote enterprise innovation performance in different ways. Knowledge chain embeddedness promotes enterprise innovation performance through assimilation capacity, while value chain embeddedness promotes enterprise innovation performance through search and acquisition capacity. Suggestions are presented on how to enhance enterprise innovation performance from the network embeddedness and absorptive capacity perspectives.

Online publication date: Tue, 04-May-2021

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