scholarly journals Do Interlocks Lead to the Convergence of Interfirm Innovation Performance? Evidence From China

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110071
Author(s):  
Ying Teng ◽  
Eli Gimmon ◽  
Wentong Lu

We examine how interlocking directorates influence innovation performance differentials between firms. Our study offers a new perspective of the effect of interlocking directorate ties upon innovation performance, focusing on network effects on interfirm performance. Using a sample of China’s listed companies for the period 2012–2016, we empirically examined the relationship between board interlocks and interfirm innovation performance differentials. The results demonstrate that the presence of board interlocks reduces interfirm innovation performance differentials and leads to a convergence of innovation performance between the connected companies. Furthermore, cross-level analysis found that the relationship between board interlocks and interfirm innovation performance differentials is moderated by the interfirm industry attributes and demographic characteristics of the board. This study expands the existing research in explaining the driving mechanism of enterprise innovation performance as affected by interlocking directorate ties.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pan Hu ◽  
Ying Wang ◽  
Tao Feng ◽  
Yuxin Duan

Purpose The purpose of this paper is to investigate three issues: how does an innovative search (local search and boundary-spanning search) impact firm innovation performance of latecomers; how does capability reconfiguration (capability evolution and capability substitution) mediates the relationship between innovative search and firm innovation performance; and how does the technological leapfrogging process (initial stage, following stage, synchronization stage and leading stage) moderate the relationship between capability reconfiguration and firm innovation performance. Design/methodology/approach A “resource-capability-performance” theoretical framework was developed to explore the relationships between local/boundary-spanning search, capability reconfiguration and firm innovation performance. The data were collected by sending out surveys to managers and employees in various industries in mainland China. These hypotheses were tested using structural equation models and hierarchical regressions. Findings The results showed that: innovative search has a direct causal relationship to capability reconfiguration; local search and boundary-spanning search are conducive to improve the innovation performance of latecomers; the impact of local search and boundary-spanning search on innovation performance is realized through the completion of mediating role of capability reconfiguration; there are differences in the path of local search and boundary-spanning search affecting the capability reconfiguration of enterprise innovation performance; and the relationship between innovative search, capability reconfiguration and enterprise innovation performance evolves with the enterprise in different stages of technological leapfrogging. Originality/value This study explores the relationship and the path of innovative search to firm innovation performance and analyzes the path difference between local search and boundary-spinning search, which enriches the research of organizational search and enterprise innovation. This paper reveals the whole path of innovative search affecting innovation performance, discusses the important role of capability reconfiguration and makes incremental contributions to dynamic capability theory. It studies the evolution of innovative search on innovation performance under the background of technological leapfrogging, which provides a new perspective for the study of organizational search and capability-based theory.


2021 ◽  
Vol 13 (17) ◽  
pp. 9878
Author(s):  
Lei Shen ◽  
Cong Sun ◽  
Muhammad Ali

The structure of the manufacturing industry has forced manufacturing companies to understand the importance of digitalization and servitization transformation, in terms of production and R&D. In this study, we examine the relationship between servitization, digitization, and enterprise innovation performance through the lens of dynamic capabilities within enterprises. We also discuss the impact of the transformation servitization strategy on business innovation, and the mechanisms by which it impacts business innovation performance. The study’s findings indicate that servitization significantly contributes to innovation performance, and digitalization acts as a mediating mechanism between the proposed relationships. Thus, this article argues for the integration and growth of servitization and digitization.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiuyuan Fang ◽  
Marshall S. Jiang ◽  
Yugang Li

PurposeIntangible resources (IRs) play an important role in enterprise innovation; previous studies find inconsistent results (positive and negative). The authors develop and test a framework to analyze IRs to see whether and how to impact firm innovation performance to reconcile the conflicting results.Design/methodology/approachThis study empirically examined the curvilinear effect of IRs and innovation performance (IP) based on data from the Annual Census of Chinese Industrial Enterprises. The moderating effect of institutional development (ID) and state ownership (SO) in the relationship between firms' IRs and IP was also examined.FindingsIt was found that there is a U-shaped relationship between IRs and IP. Moreover, the institutional development weakens the U-shaped relationship.Originality/valueThe U-shaped relationship explains the inconsistent results in previous studies. It offers some important implications for managers and policymakers, who must understand the role of IRs.


2020 ◽  
Vol 12 (14) ◽  
pp. 5677
Author(s):  
Chen Tao ◽  
Yiying Qu ◽  
Hao Ren ◽  
Zhuopin Guo

Improving enterprise innovation performance is key for enterprises to obtain sustainable competitiveness. With the increasingly fierce market competition of technological and product innovation, acquiring external heterogeneous knowledge of alliance enterprises becomes core to improving innovation performance. In this paper, we constructed a theoretical model to present the effect of inter-enterprise knowledge heterogeneity and alliance network governance mechanisms on enterprise innovation performance. We selected high-tech enterprises as the research object for empirical research and reached the following conclusions: (1) Inter-enterprise knowledge heterogeneity has a positive effect on exploratory and exploitative innovation performance, and (2) trust and contract have a moderating effect on the relationship between inter-enterprise knowledge heterogeneity and enterprise innovation performance.


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