A Research On Innovation Performance Of Large Enterprise Dominant Innovation Network

In2011, Apple has attested to the fact that innovate or die, when it comes to theiphone and the ipad releases. Innovation has become the spontaneous or intermittentchange of the social and economic development. Innovative capacity has been theimplementation basis of the sustainable competitive advantage in a competitive marketenvironment. Network organization has been viewed as a basic institutional arrangementto cope with the systemic innovation (Imai&Baba,1989), which can allocative theinnovative resources in the innovation network efficiently and also improve thecooperation efficiency and effectiveness. Innovation network has been the best choicesfor companies to obtain the innovative resources and sustainable competitive advantage.There are lots of large enterprises dominant industry innovation networks in regionaleconomic development of China. So the research on innovation performance in largeenterprises dominant industry innovation networks has more theoretical and praciticalsignificance. This paper is organized as follows:Based on the literature review, we exploringly define the large enterprises dominantindustry innovation networks as a set of heterogeneity actors with innovation objectiveand the set of complex ties representing the “core-periphery” network structure in whichthe dominant large enterprise has been the heart of the network among actors. Thedominant role of the large enterprise is based on the complex ties within the multi-levelstructure. The dominant large enterprise can promote the communication and cooperationbetween the enterprises in network, and also manage and coordinate the conflict innetwork.In order to deeply analyse the innovation performance, We construct a“technology&human capital-enterprise evolution-network evolution-resourceallocation” model to analyse the evolution of the large enterprises dominant industryinnovation network and extract the key elements that influence the enterprises’innovation performance from the analyses of the large enterprises dominant industryinnovation network evolution. The key elements include network heterogenetigy, thedominant role of the large enterprise, network inertia, conflict management and network environment. The network inertia has been influenced by the tie strength and networkcapacity. Based on the analysis of the relationship between the network key elements andthe innovation performance, this paper put forward the research assumption that thenetwork key elements have positive impact on the innovation performance, and theinnovation performance concept model of the large enterprise dominant industryinnovation network.Based on theoretical analysis, this paper exploringly develops the key elements andinnovation performance scale of the large enterprise dominant industry innovationnetwork. Innovation performance is the unidimensional construct, and network keyelements have five categories which are composed of six indexs as follows: networkheterogenetigy, the dominant role of the large enterprise, tie strength, network capacity,conflict management and network environment. Based on the literature review, this papermakes an operation definition to the seven latent variables. This paper exploringlydevelops the scale according to the maturity scales which have been developed by theworld wide scholars. The validity and reliability analysis show that these scales havegood validity and reliability that can best reflect the state of the network and theconstructs. The scales can support the empirical analysis strongly.Base on the questionnaire survey to the180enterprises of several large enterprisesdominant industry innovation network in Liaoning Province, this paper has received114valid samples. Based on the valid samples, this paper constructs the innovationperformance PLE-SEM model of the large enterprise dominant industry innovationnetwork. Empirical results strongly support the innovation performance researchassumption and concept model of the large enterprise dominant industry innovationnetwork, and reach the conclusions as follows: First, there are still some problems withthe key elements and innovation performance scale which need to be improved in thefurther research. Second, the network elements including network environment, thedominant role of the large enterprise, network heterogenetigy, tie strength, networkcapacity, all have positive impact on the innovation performance, and their influences arelowered accordingly. These empirical results support the innovation performanceresearch assumtions H1, H2, H3, H4and H6. ⅰ. The large enterprise has been the heartof the network controlling the most important relationship capital which can influence the resources flow and allocation and also the collaboration among organizations. Thedominant role of large enterprise has great impact on the innovation performance ofenterprises in network. ii. A good network environment is easy to stimulate theinter-organization collaboration and improve the innovation efficiency and effectiveness.Though this paper makes a questionnaire survey to the180enterprises of several largeenterprises dominant industry innovation network in Liaoning Province where thegovernment has great impact on the innovation network and its network environment,this empirical result still verify the research assumption H6. iii. Network heterogenetigyhas greater impact on innovation performance than tie strength. The empirical resultssupport the idea that the knowledge flow and creation which embedded in the networkstructure is the essence of the network evolution. Heterogeneous resources are thefoundation to the network development, and the network ties are the approaches forreaching the heterogeneous. iv. Network capacity has positive impact on the innovationperformance, but its path coefficient is very low. One possibility is the special industry ofLiaoning innovation network. Another is the immature scale. Third, the effect of networkcapacity on innovation performance is not significant. One possibility is the immatureinnovation performance scale which needs to be futher improved. Another is that theeffect of conflict management on innovation performance in Liaoning large enterprisedominant industry innovation network has been weakened by the dominant role of largeenterprises.