International Manufacturing Network Embeddedness and

Innovative Performance

Guannan Xu

gx207@cam.ac.uk

Contents

Background Research Gaps Research Aims Research Framework Concept Model Difficulties

gx207@cam.ac.uk

Contents

Background Research Gaps Research Aims Research Framework Concept Model Difficulties

gx207@cam.ac.uk

Background

International manufacturing network

Network embeddedness is a strategic resource to gain competitive advantage

A firm should integrate all kinds of resources available in the network that it’s embedded in to compete with its rivals

Technological innovation

Innovation is the core of competitive advantage

The key to firms’ technological innovation lies in the acquisition of knowledge via its network

gx207@cam.ac.uk

Network embeddedness Interplay between social structures and economic

activities in industrial society Relational embeddedness: the role of direct inter-

firm ties Strong tie: equity tie, manufacturing joint venture, joint R&D

project Weak tie: marketing & licensing agreement & standard,

training arrangement Structural embeddedness: how the structural

positions affect the actions and opportunities of firms in the network Hierarchy Density

gx207@cam.ac.uk

Contents

Background Research Gaps Research Aims Research Framework Concept Model Difficulties

gx207@cam.ac.uk

Industrial issues

When choosing a collaborate partner, which form of alliance is more efficient for its performance improvement?

How to establish alliances with other firms according to its position in the network?

How to establish alliances with other firms according to its industrial characteristics?

gx207@cam.ac.uk

Theoretical challenges

Lack of comprehensive research probing into the influence mechanism of network embeddedness and innovative performance relational embeddedness & structural

embeddedness upstream embeddedness & downstream

embeddedness Little research on these issues from the

perspectives of developing countries

gx207@cam.ac.uk

Contents

Background Research Gaps Research Aims Research Framework Concept Model Difficulties

gx207@cam.ac.uk

Research Aims

to explore optimal upstream and downstream network configurations in different network structures and industrial characteristics to search for the mechanism of network

embeddedness influence on innovative performance

to find the most efficient modes of inter-firm ties for firms’ operation in international manufacturing network

gx207@cam.ac.uk

Contents

Background Research Gaps Research Aims Research Framework Concept Model Difficulties

gx207@cam.ac.uk

Research Framework

Literature review

Concept model

Pilot case studies

Questionnaire statistic analysis

Further case studies

gx207@cam.ac.uk

Contents

Background Research Gaps Research Aims Research Framework Concept Model Difficulties

gx207@cam.ac.uk

Concept Model

Weak Ties

Strong Ties

Weak Ties

Exploration Knowledge

Exploitation Knowledge

Innovative Performance

Stuctual Embeddedness

Upstream Embeddedness

Downstream Embeddedness

Acquisition of Knowledge Competitive

Advantage

Stuctual Embeddedness

Strong Ties

Controlled variables: industrial characteristics, firm size, firm region

gx207@cam.ac.uk

Hypothesis 1: positive relationship between network embeddedness and innovative performance

Weak Ties

Strong Ties

Weak Ties

Innovative Performance

Upstream Embeddedness

Downstream Embeddedness

Competitive Advantage

Strong Ties

gx207@cam.ac.uk

Hypothesis 2: positive relationship between network embeddedness and knowledge acquisition

Weak Ties

Strong Ties

Weak Ties

Exploration Knowledge

Exploitation Knowledge

Upstream Embeddedness

Downstream Embeddedness

Acquisition of KnowledgeStrong Ties

gx207@cam.ac.uk

Hypothesis 3: positive relationship between knowledge acquisition and innovative performance

Exploration Knowledge

Exploitation Knowledge

Innovative Performance

Acquisition of Knowledge Competitive

Advantage

gx207@cam.ac.uk

Hypothesis 4: mediate effect of knowledge

Weak Ties

Strong Ties

Weak Ties

Exploration Knowledge

Exploitation Knowledge

Innovative Performance

Upstream Embeddedness

Downstream Embeddedness

Acquisition of Knowledge Competitive

Advantage

Strong Ties

gx207@cam.ac.uk

Hypothesis 5: moderate effect of structural embeddedness

Weak Ties

Strong Ties

Weak Ties

Exploration Knowledge

Exploitation Knowledge

Stuctual Embeddedness

Upstream Embeddedness

Downstream Embeddedness

Acquisition of KnowledgeStrong Ties

gx207@cam.ac.uk

Hypothesis 6: moderate effect of structural embeddedness

Exploration Knowledge

Exploitation Knowledge

Innovative Performance

Acquisition of Knowledge Competitive

Advantage

Stuctual Embeddedness

gx207@cam.ac.uk

Concept Model

Weak Ties

Strong Ties

Weak Ties

Exploration Knowledge

Exploitation Knowledge

Innovative Performance

Stuctual Embeddedness

Upstream Embeddedness

Downstream Embeddedness

Acquisition of Knowledge Competitive

Advantage

Stuctual Embeddedness

Strong Ties

Controlled variables: industrial characteristics, firm size, firm region

gx207@cam.ac.uk

Contents

Background Research Gaps Research Aims Research Framework Concept Model Difficulties

gx207@cam.ac.uk

Difficulties

Measurement of variablesnetwork embeddedness (strong & weak)knowledge acquisition (exploitive &

explorative) Quantity of valid questionnaires Selection of statistic methods

gx207@cam.ac.uk

Thanks for your attention!