Dynamic Business Environment, Enterprise Network Absorptive Capacity Mechanism

With the globalizationof economy, a variety of network forms of organization are emerging, such as strategic alliances, joint ventures, virual organizations, outsourcing, franchises, R&D consortia and government sponsored technology programs and so on. Network becomes the environment of firm's development, and the knowledge and information it contains can not be imitated by competitors. In the era of network, the key for firm to build the its competitive edge is to configure appropriate network portfolio for acquiring and assimilating knowledge from the network, and then through the internal knowledge integration mechanism to transformate and exploit these knowledge in the business process. However, in current research on firm network, there is seldom systematically research considering contigent factors, network portfolio on the topic of knowledge.In this paper, based on the review of relevant study of absorptive capacity, firm network, knowledge integration mechanism and the dynamics of operating environment, we propose and test a model of how firm network effect firm's absorptive capacity in a dynamic operating environment, meanwhile considering the industry and size of the firm as control factors, systematically study the effect of network of strong ties, network of weak ties and coordination knowledge integration mechanism.Empirically, this paper was conducted with a questionnaire effectively distributeamong 118 firms. We apply data redundancy analysis and linear regression analysis to test the conceptual model and hypothesis raised. After then,we put a case, based on dynamic view study the different effect of firm's network portfolio and absorptive capacity with the development of firm resource endowment and environment dynamic for complement our study. The results suggest that:(1) In the background of dynamic environment, the strength of strong ties' network and weak ties' networks has a positive impact on potential absorptive capacity, and the strength of weak ties' network are more important; the size of weak ties' network has a positive impact on potential absorptive capacity; and the dispersion of weak ties' network has a negative impact on potential absorptive capacity. The empirical results suggest that the potential absorptive capacity has mediating effects on the relationships between firm network and firm's realized absorptive capacity. (2) In the background of dynamic environment, coordination knowledge integration mechanism has moderation effects on the relationships between firm's potential absorptive capacity and realized absorptive capacity. This means the mechanism of cross-function communication such as training, job rotation, participation in decision-making are positively moderating the relationship of the potential absorptive capacity and realized absorptive capacity.Finally, combined with the case of Zhejiang HISUM to explore with the development of firm's resource endowment and change of operating environment, firm needs to adjust their network portfolio, and knowledge integration mechanism to match to increase their potential absorptive capacity and realized absorptive capacity.