Network Embeddedness and Firm Innovation: An Empirical Research on Strategic Emerging Industries in China

Zheng Xiangjie

International Journal of Business and Management, 2017, vol. 12, issue 5, 209

Abstract: The impact of strategic emerging industries alliance innovation network on firm innovation capability has been paid great attention by firms and academia. Supported by the social network analysis theory and method, we take the listed companies network embedded in the strategic emerging industries as an example, and use negative binomial regression to study the impact of network embeddedness on firm innovation capability. The empirical results show the firms embedded in alliance networks with better betweenness centrality will have greater innovative output in one or two years later; the liner relationship between the whole network density and the innovation ability is not obvious, but has a significant inverted U type effect, in other words, the firms embedded in alliance network with moderately dense connection will have greater innovative output. These conclusions will provide new scientific basis for firms to develop alliance activities and for relevant government departments to make alliance policies.

Date: 2017
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