The Dual Effects of Innovation Ecosystem Embeddedness and Political Network Embeddedness on Firm Innovation Performance

Abstract

Abstract: Based on network pluralism framework, this study explores the impact mechanism of innovation ecosystem embeddedness and political network embeddedness on firm innovation performance. Using the samples in the Innovative Pilot Firm Database for regression analysis, this study finds that innovation ecosystem embeddedness and political network embeddedness both play an active role in increasing firm innovation performance. The results show that both networks can provide resources and support for firms, which can increase the innovation performance. It is also found that the interaction between innovation ecosystem embeddedness and political network embeddedness has negative effect on firm's innovation performance. Specifically, the positive impact of innovation ecosystem embeddedness on firm's innovation performance will weaken with increasing strength of political network embeddedness, and the role of political network embeddedness in promoting firm's innovation performance will be weakened with the strength of innovation ecosystem embeddedness increasing. The results show that both high strength of innovation ecosystem embeddedness and political network embeddedness will lead to resource redundancy and logic conflict, which will have antagonistic effect on firm's innovation performance. The research results are of great significance for firms to manage multiple external networks and improve innovation performance.

Key words: innovation performance, innovation ecosystem embeddedness, political network embeddedness, network pluralism framework

Dong Caiting, Liu Xielin, Zhang Si. The Dual Effects of Innovation Ecosystem Embeddedness and Political Network Embeddedness on Firm Innovation Performance[J]. Management Review, 2020, 32(10): 170-180.

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