Alliance Capability, Innovative Activity and Evolution - Innovative Management in Information and Production - page 54

behaviour among members becomes more standard, partnership comes to be
closer, and complementary resource was used more effectively. Therefore, alliance
members seek greater development through the complementary advantages and
collaborative innovation, which not only further reduces the transaction cost and
improves the trading efficiency, but also can be beneficial to the accumulation of
social capital, which is conducive to the development of enterprises and evolution
of alliance.

3.5.5 Innovative Activity and Alliance Structure Evolution

Gao and Li ( 2006 ) say that the network structure in part is the results of all members'
technological innovative activities. Since innovative activities occurred, the former
network structure will be unable to adapt to technological innovation and changes.
On one hand, when innovation occurs inside the alliance, it will require members to
consciously follow up which makes enterprise progress, by thus network numbers,
types, and relations incline to be diverse; on the other hand, innovative activities
have also promoted the alliance expansion. When the enterprise wants to gain
innovation resources or, due to its reputation of absorption or, derive a new member
of alliance, the network boundary and the scale of the network will expand; when
innovation occurs, the network will continue to eliminate the nodes who fall behind
others and lack the innovative intentions and behaviours in order to continuously
enhance the efficiency of the network. Proposition 2: Innovative activity has a
positive effect during the process of alliance network evolution.

4 Conclusion

Since alliance capability affects alliance members' innovative activity remarkably
and which has a great effect on alliance network evolution in four aspects, we can
conclude that alliance capability has a positive effect on alliance network evolution.

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