Building Knowledge-Based Dynamic Capabilities from the Perspective of Network Embeddedness

Along with the rapid growth of information technologies and globalization,and the fast process of Chinese economic upgrading and transformation,the environment for Chinese firms is becoming more complex and dynamic.How to tackle the challenge brought by dynamic environment or how to utilize the opportunities provided by dynamic environment has become the key question of strategic management for most firms and focal topic for academia in China.The theory of dynamic capabilities is capable of explaining how and why certain firms can attain competitive advantages in fast-changing and uncertain environment.However the concepts and definitions in existing literatures are so broad and vague that dynamic capabilities are difficult to observe and empirical studies are rare,especially in the context of China. Knowledge resources are widely considered as the most valuable ones among all kinds of resources.The school of knowledge-based view conceptualizes firms as heterogenous,knowledge-bearing entities and deems that capabilities of firms are integration of knowledge.Meanwhile,building innovation networks has become a key approach to acquire knowledge and improve innovation performance.Especially,network embeddedness is widely believed to have significant influence on technological innovation.However in existing literatures there are no clear answers to how network embeddedness impact on innovation and the relationship between network embeddedness and dynamic capabilities.Based on the relationship between dynamic capability,network embeddness as well as innovation performace. This paper explores the relationship between knowledge-based dynamic capabilities,network embeddedness and innovation reveals that different network embeddedness attributes including diversity,trust,joint problem solving and commitment have significant influence on knowledge acquisition capability and knowledge integration capability and knowledge integration capability has pivotal impact on innovation performance.Therefore,a theoretical framework-network embeddedness-dynamic capabilities-innovation performance is established and the black box of the mechanism of network embeddedness is opened.These findings may inspire future research on dynamic capabilities and innovation in the network circumstance.