Technology embeddedness, innovation differentiation strategies and firm performance: Evidence from Chinese manufacturing firms

Xuefeng Liu
School of Management, Xiamen University, Xiamen, China

Xiaobo Wu
School of Management, Zhejiang University, Hangzhou, China

PP: 020 - 035

Abstract

Chinese manufacturing firms have been pursuing strategic upgrading from traditional low-cost manufacturing strategies to innovation differentiation strategies since China's reforming and opening.

Under such research backgrounds, using data from 182 Chinese sample firms in east China, this paper attests that relational technology embeddedness and structural technology embeddedness have positive impacts on firm performance, and such influences are mediated by innovation differentiation strategies.

The result also shows that the interaction between relational technology embeddedness and structural technology embeddedness has a direct impact on firm performance, not being mediated by innovation differentiation strategies.

Keywords

network embeddedness; technology embeddedness; innovation differentiation strategies; strategic upgrading; China; manufacturing firms


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