Does the way in which a firm interacts with its network partners influence its formulation of product innovation strategies?

Xuefeng Liu (Corresponding Author), Jing Cai, Alison Smart

Research output: Contribution to journalConference article

Abstract

This paper examines how network embeddedness influences firms’ formulation of product innovation strategies. We explored firms’ interactions with two types of network partners (business partners and technical partners) along two dimensions (relational and structural) of network embeddedness. The moderating effect of change dynamics on the interplay between network embeddedness and firms’ strategy formulation was also examined. Data were collected from 310 firms in five Chinese high-tech and three traditional manufacturing industries. Our findings indicate that strong, weak and non-redundant contacts are conducive to the formulation of product innovation strategies. Firms’ interaction with technical and business partners is also positively associated with the strategy formulation. However, geographic dispersion of partners has no impact. In addition, although technological dynamics exert a positive moderating effect on the relationship between network embeddedness and the formulation of product innovation strategies, radical changes in market conditions had no impact on firms’ engagement with network contacts, and consequently on strategy formulation.
Original languageEnglish
Number of pages1
JournalInternational Journal of Technology Management
Publication statusAccepted/In press - 24 Aug 2019

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innovation strategy
Innovation
firm
Industry
contact
manufacturing industry
interaction
Innovation strategy
Product innovation
market
Network embeddedness

Keywords

  • network embeddedness
  • the formulation of product innovation strategy
  • change dynamics
  • emerging economy

Cite this

Does the way in which a firm interacts with its network partners influence its formulation of product innovation strategies? / Liu, Xuefeng (Corresponding Author); Cai, Jing; Smart, Alison.

In: International Journal of Technology Management, 24.08.2019.

Research output: Contribution to journalConference article

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