The impact of business networks on dynamic capabilities and product innovation: The moderating role of strategic orienta
- PDF / 566,328 Bytes
- 28 Pages / 439.37 x 666.142 pts Page_size
- 30 Downloads / 209 Views
The impact of business networks on dynamic capabilities and product innovation: The moderating role of strategic orientation Wei Jiang 1 & Felix Mavondo 2 & Weihong Zhao 3 # Springer Science+Business Media, LLC, part of Springer Nature 2019
Abstract Despite the rising interest in the drivers of dynamic capabilities, limited attention has been paid to how a firm’s business network relates to its development of dynamic capabilities. Based on a dynamic capability perspective, this study examines how network breadth and network depth impact dynamic capabilities and in turn product innovation and how strategic orientation moderates these effects. The results of a survey of 256 Chinese manufacturers indicate that both network breadth and depth are important drivers of dynamic capabilities, which act as a mediator that transmits the benefits of business networks into successful product innovation. Additionally, learning orientation and market orientation present as important boundary conditions in the relationship between business networks and dynamic capabilities; interestingly, they function in opposite ways. These findings have important implications regarding how a firm’s business network, in combination with its strategic orientation, affects the development of dynamic capabilities and successful product innovation. Keywords Dynamic capabilities . Network breadth . Network depth . Market orientation .
Learning orientation . Product innovation
* Weihong Zhao [email protected] Wei Jiang [email protected] Felix Mavondo [email protected]
1
School of Management, Xiamen University, 422 Siming South Road, Xiamen 361005 Fujian, China
2
Faculty of Business & Economics, Monash University, Clayton campus, Wellington Road, Clayton, VIC 3800, Australia
3
School of Business, Jiangxi Normal University, 99 Ziyang Avenue, Yaohu Campus, Nanchang 330022 Jiangxi, China
W. Jiang et al.
Introduction Product innovation enables a firm to redefine its current product markets and/or develop new products to capture emerging market opportunities. Thus, product innovation is a key driver of a firm’s survival and sustainable competitive advantage, particularly under business conditions characterized by technological discontinuities, changing market preferences, globalization and increasingly intense market competition (Zhou, Gao, & Zhao, 2017). Various theories have attempted to identify the drivers of product innovation, among which the dynamic capabilities perspective (DCP) is one of the most influential (Fainshmidt, Pezeshkan, Lance Frazier, Nair, & Markowski, 2016; Teece, Pisano, & Shuen, 1997). This perspective posits that dynamic capabilities—a firm’s ability to Bintegrate, build, and reconfigure internal and external resources to address rapidly changing environments^—lie at the center of a firm’s innovating potential and value creation (Teece et al., 1997, p. 516). A firm with strong dynamic capabilities engages in continuously sensing, seizing and transforming its resources into innovative solutions, thus responding
Data Loading...
