Network resources and the innovation performance : Evidence from Chinese manufacturing firms

Purpose – So as to understand the effects of network resources on firm innovation and performance within alliances and networks, this paper aims to examine the correlation between network resources and innovation performance through the mediation of capability accumulation and relative bargaining power. Design/methodology/approach – Drawing on a survey of 208 Chinese firms engaged in global production networks, this paper extracts four sets of hierarchical regressions to test the impact of network resources on innovation performance. Findings – Results show that network resources are an important source of competitive advantage and the distinction between accessed resources and embedded resources is critical. Other than through direct influences, innovation performance was partly achieved through the mediating role of technological capability and relative bargaining power. Research limitations/implications – Building upon the data introduced in this paper, future studies may examine the effects of network resources in different contexts and the interaction between external and internal resources. Practical implications – For firms competing within and between various networks, the forming and utilizing of network resources become a new source of competitive advantage. Hence, careful planning and a consideration of network resources should be undertaken to achieve improvements to a firm's performance. Originality/value – First, this paper adds value to the network resource construct by distinguishing two different dimensions. Second, by integrating the mediating effects of technological capabilities and relative bargaining power, this paper reveals the mechanism by which network resources impact innovation performance within various network structures.