Alliance Capability, Innovative Activity and Evolution - Innovative Management in Information and Production - page 51

more high-quality information can be obtained, and more information can be
disseminated effectively, which can accelerate the tacit knowledge flow, and then
promote the innovative behaviour of the enterprise.

3.2.2 Absorbing and Integrating Capability and Innovative Activity

Absorbing and integrating capability is considered to have been playing an im-
portant role in cultivating new knowledge ( Lane and Lubarkin 1998 ), enterprise
learning, and especially successful innovation. Through absorbing and integrating
capability the enterprise transforms, spreads, applies, and integrates the tacit
knowledge and ability of alliance into their own knowledge and skills timely and
effectively and improve the innovation in speed, frequency, and intensity.

3.2.3 Compositive Innovation Capability and Innovative Activity

Without innovative capacity, innovation can just be a fantasy, only with the ability
to innovate; innovation can be realistic. In alliance network, only possessing the
capability of knowledge gathering and absorbing is far from enough; the enterprise
may not be attractive to partners and technological innovation can never be achieved
without certain comprehensive innovation capability. Generally speaking, with
strong compositive innovation capability, enterprise can develop new products and
new technology continuously, as well as expand the space for the development and
urge enterprises to maintain a strong innovative intention. Furthermore, it cannot
only attract more high-quality relations but also benefit from the technical level to
conduct effective exchanges and communication. In addition, this interaction can
increase the innovation confidence, reduce the innovation risk, and improve the
success rate of innovative activities. Proposition lb: Alliance learning capability has
a positive effect on innovative activity.

3.3 Interaction Between Relation Bonding Capability

and Innovative Activity

3.3.1 Communicating Capability and Innovative Activity

Enterprise's communicating capability mainly influences the innovative intention
and behaviour of corporate through three aspects. First, enterprises with high
communicating capability can increase the frequency and intensity of effective
communication with each other. And the more they communicate with others,
the more skills and knowledge can be shared and transferred among the alliance,
and the more rapidly can information and resources flow, which is more likely