Research On The Relationship Between Dependence On Supplier And Firm Innovation

With the development of science and technology,the impact of innovation on the competitiveness of firms is significant.It provides impetus for firms’ development,and is an important source of sustainable competitiveness for firms.Innovation is an inexhaustible force that encourages firms to maintain their vitality.Firms can form new productivity through innovation.People gradually realize that technological innovation is not only the source of economic growth,but also an important factor for firms to improve their competitiveness.Therefore,firms are paying more and more attention to innovation.Nowadays,firms are embedded in complex supply networks,trying to obtain more resources for innovation by coordinating and depending on upstream and downstream.The dependency relationship between the supplier-buyer firm influences the external and internal resources in the network,and ultimately realizes common interests.However,in most cases,the status of buyers and suppliers is asymmetric,and there is always a situation where one party depends on the other.From the perspective of the supply chain network,this thesis combines the Chinese context and focuses on the core issue of “depending on the supplier’s influence mechanism on the innovation performance of focal firms”.It collects 693 relevant data samples of listed firms from 2014 to 2018.Using empirical analysis method and social network analysis method,using STATA,UCINET data analysis software to conduct research.Discuss whether the dependence of focal firms on suppliers will affect their innovation performance.On this basis,social network analysis is used to describe the position of a firm in the supply network through network centrality,and to examine its role in firm innovation,as well as its role in the mechanism of dependence on supplier and firm innovation.This thesis finds that the dependence of focal firms on major suppliers is negatively related to their innovation,the high-level closeness centrality and eigenvector centrality in the supply network are negatively correlated with firm innovation.In addition,this thesis also examines that the relatively high level of closeness centrality and eigenvector centrality of firms in the supply network can effectively reduce the negative impact of depending on suppliers on firm innovation.This thesis has enriched the supply chain relationship management and supplemented the dynamic capability theory and the social network theory.The results of this thesis provide new ideas for firm procurement and supplier selection,as well as guidance on how to innovate and develop for firms that depend on suppliers.