Dual Network Embeddedness,Dual Innovation And Innovation Performance Of Multinational Firms

In the context of the current national strategy of vigorously promoting enterprises to "go global" and "Made in China",it is of great significance to actively promote Chinese multinational enterprises to find more space for survival and development overseas,and to better promote China to open up to the outside world and develop new industry ecology.It is of great practical significance.However,the realistic background of Chinese multinational enterprises is not optimistic,with relatively weak management capability,and the focus of market segmentation is still concentrated on China’s local market,the level of globalization is still at a relatively preliminary stage,the overseas financing market is mainly concentrated in developing countries and underdeveloped regions,the added value of products is low,and the multinational management experience is small.There is still a small gap with developed countries’ multinational enterprises.For multinational enterprises,different kinds of network relationships have different management implications for the development of enterprises.In recent years,more and more realistic evidence and academic research results show that MNEs face a dilemma in making full use of network relationships: for local network embedding,MNEs can enhance their innovation performance through intensive and high-frequency information resource exchange among networks.However,due to the lack of overseas network construction,enterprises may pay too much attention to the use of local networks,thus increasing their path dependence and creating a series of problems such as "passive locking",forming a "ceiling effect" in the industry.Therefore,both local networks and overseas networks should be considered in order to effectively promote the sound development of multinational companies.Technological innovation of enterprises is the foundation for improving innovation performance and the source of development power of multinational enterprises.Different technological innovation models have different impacts on enterprises.The emphasis on a single innovation model will lead to deformed development of enterprises;excessive exploratory innovation will lead to the consumption of huge limited resources,increase the risk of technological innovation failure,and fall into the "failure trap" of innovation;excessive exploitation innovation will lead to the formation of a new innovation strategy in certain areas.Excessive exploitative innovation can lead to cognitive barriers and "capability rigidity" in certain areas,which in turn has a negative impact on business performance.From a practical point of view,how to choose the best innovation method and how to achieve balanced development with limited resources has become a challenge for multinational companies today.Based on this,this chapter takes Chinese MNCs as the main research object,and examines the mechanism of the influence of dual innovation in mediating from the dual network embedding of local-overseas network divided by geographical latitude as the independent variable and innovation performance as the explanatory variable.This paper uses multiple regressions to collect data from 346 multinational manufacturing companies in Shanghai and Shenzhen A-shares from 2013-2020 and extracts 1517 observations targeting the main directly engaged in conducting both local and multinational behaviors,and uses SPSS22 and STATA15 software to conduct empirical analysis to test the constructed theoretical model.And the following conclusions are drawn:(1)network embedding of multinational firms is characterized by duality;(2)dual network embedding positively affects innovation performance of multinational firms:(3)exploratory and exploitative innovation play a partially mediating role in both network embedding and innovation performance;(4)exploratory-exploitative innovation balance plays a partially mediating role.This study further enriches the study of network structure and individual firm performance with in-depth discussions of theories underlying multinational enterprise related theory,network embeddedness theory,and dual theory,and provides a new perspective for understanding the understanding of multinational enterprises.At the same time,it bridges the theoretical gap of explaining multinational enterprises in emerging markets separately from dual network embeddedness,which has positive reference significance for promoting the innovative development of multinational enterprises and provides valuable reference for the government to promote the "clear direction and classification guidance" of China’s overseas strategic layout.