The Mechanism And Law To Leverage Enterprises' Innovation Capability Based On Synergy Of Innovation Networks

In the era of globalization and knowledge economy, innovation boundary extends and innovation network becomes the best way for benefits from open innovation because of its embedded organizational mechanism and flexible coordinated approach which integrate scattered knowledge resources and enterprises'inner resources for synergetic innovation. In addition, the organizational structure and management activities change rapidly with disperse productive activity and expanding management range in different fields. How to achieve the synergy of inter- and intra-innovation network to leverage innovation capability is the major problem of enterprises in open innovation landscape.This study encloses the elements synergy and capability leveraging of manufacturing enterprises'innovation networks in the context of open innovation, and proposes three logically interrelated sub-studies according to the routine: element--structure--capability. The three sub-studies are:1). Strategic pathway to leverage enterprise's innovation capability by synergy of internal and external innovation elements in innovation networks; 2). Mechanism to leverage enterprise's innovation capability by synergy of innovation elements in innovation networks; 3). The dynamic evolution law of innovation capability based on synergy of enterprise's internal and external innovation network elements.The first sub-study on the basis of exploratory case studies of three manufacturing companies is to explore the mechanism that enterprises integrate external and internal resource, and transform resources into technological innovation capabilities. The research points out that the key to industrial transformation and upgrading is leveraging innovation capability, which is also the basis of structural adjustment. Innovation network reflects the nature of innovation and synergy which can utilize the scattered innovation resources effectively. And six initial assumptions are proposed. Insights from the case studies provide theoretical ideas from practice for the study that followed in the next sections. The second sub-study proposes assumptions on the basis of the first sub-study, and makes in-depth analysis under the related theoretical discussion. By the i omorphism of reconstruction, this sub-study treats enterprise as a structure composed of different elements and departments, and builds the overall framework of enterprise's internal and external innovation network synergy and innovation capability mechanism. By questionnaire survey of 278 enterprises in Zhejiang and Shandong Province, this sub-study utilizes high order factor model of structural equation model to analyze the internal and external innovation network synergy in three steps:(1) Analyzing each dimension's influence of internal and external innovation networks on different innovation capability (exploration and exploitation); (2) Analyzing second-order constructs' significant correlation (namely interaction) of internal and external innovation networks; (3) Constructing second-order factor as a general entity which represents the complementary characteristic of different dimensions. By introduces environment dynamic variable, it studies the strength or direction of influence of environment toward the relationship between capability and performance.The third sub-study is based on the previous two studies and uses system dynamics (SD) method for analyzing the internal and external innovation networks synergy and the dynamic evolution characteristics of innovation capability. It first establishes a second-order model on the basis of structural equation, in order to studies the dynamic influence of enterprise's internal and external innovation network synergy toward innovation capability. Then, under case studies, it establishes first-order system dynamic model to explore the dynamic evolution relationship between enterprise's internal innovation element synergy and innovation capability in the context of network environment. Finally, it summarizes the dynamic law of element synergy and innovation capability evolution in innovation network.The research innovative points are as follows:1. Exploring the inherent law of innovation elements synergy and development of innovation capability in the context of innovation network.Research focuses on the dynamic evolution of enterprises'innovation capability in network and is carried out from two research level—the synergy of enterprise' internal network and external network, and the synergy of enterprise's internal elements. The first research level refers to the synergy between internal and external enterprise, and it verifies that the internal network and external network exists interaction. The complementary on the basis of interaction promotes the development of exploration innovation capability and exploitation innovation capability simultaneously, and promotes the construction of ambidextrous organization in a longer duration. The second research level refers to the synergy of enterprise's internal elements and multi-dimensional elements' combination promotes the capability transformation from non-core capability to core capability. The role of elements' synergy has hierarchical characteristic, such as the basic characteristic of technological and market elements' synergy, the supporting characteristic of organizational and institutional elements' synergy, and the orientation of strategic and cultural elements' synergy. The establishment of enterprise's original capability needs support and guidance from synergy of strategy and culture.2. Analyzing the strategic parthways to leverage innovation capabilities in innovation networks by synergetic innovation.The research proposes that enterprises should first build systematic innovation capability by internal elements' synergy, then promote synergetic innovation along the value chain and by different individuals of network, Three strategic pathways are summarized:To promote incremental innovation capability by synergy of internal elements, and to leverage Integrated Innovation capability by cross-border synergy, and to enhance original invention capability by strategic alliance synergy.3. Mechanism to leverage innovation capability by the synergy of enterprises' internal and external innovation networks.The research examines the enterprises' internal and external interaction and complementary effects. It indicates that the enterprise's internal innovation system is the basis of the development of innovation capability. The synergy of internal and external innovation network promotes the development of different innovation capability, achieves organizational ambidexterity, and reduces the negative effect of environmental turbulence which also improves the understanding of synergetic innovation mechanism, so as to enlarge the spatial extent of enterprise innovation elements'synergy and capability leveraging.4. Integrating internal network and external network into a holistic framework to study dynamic evolution of innovation capability.From the methodology, system dynamics model is applied to study the synergy of innovation elements across different levels, and the holistic framework fills the gap between enterprises'internal and external innovation networks.