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The impact of business networks on dynamic capabilities and product innovation: The moderating role of strategic orientation

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Listed:
  • Wei Jiang

    (Xiamen University)

  • Felix Mavondo

    (Monash University)

  • Weihong Zhao

    (Jiangxi Normal University)

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.

Suggested Citation

  • Wei Jiang & Felix Mavondo & Weihong Zhao, 2020. "The impact of business networks on dynamic capabilities and product innovation: The moderating role of strategic orientation," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 1239-1266, December.
    • Handle: RePEc:kap:asiapa:v:37:y:2020:i:4:d:10.1007_s10490-018-9628-2
    DOI: 10.1007/s10490-018-9628-2
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    2. A. E. Rodríguez Salazar & M. A. Domínguez-Crespo & A. M. Torres-Huerta & A. I. Licona-Aguilar & A. Nivón-Pellón & V. N. Orta-Guzmán, 2021. "Analysis of the Dynamical Capabilities into the Public Research Institutes to Their Strategic Decision-Making," Sustainability, MDPI, vol. 13(12), pages 1-22, June.
    3. Liping Liu & Lichuan Cui & Qian Han & Chunyu Zhang, 2024. "The impact of digital capabilities and dynamic capabilities on business model innovation: the moderating effect of organizational inertia," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    4. Nadia Zahoor & Yong Kyu Lew, 2022. "Sustaining superior international performance: Strategic orientations and dynamic capability of environmentally concerned small‐ and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1002-1017, March.
    5. Ogochukwu Christiana Anyanwu & Sunday Emeka Oloto & Victor Chukwunweike Nwokocha, 2023. "Impact of strategic alliance on the innovation of women-owned enterprises in Nigeria," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    6. Timilehin Olasoji OLUBIYI, 2022. "MEASURING TECHNOLOGICAL CAPABILITY AND BUSINESS PERFORMANCE POST-COVID ERA: EVIDENCE FROM SMALL AND MEDIUM-SIZED ENTERPRISES(SMEs) IN NIGERIA," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 234-248, November.
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