Information Technology Reference
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capacity with valuable input factor can increase and facilitate a firm's innovation to
the R&D process. Still, Hurry, Miller and Browman (1992) noted that this process
is 'self-reinforcing' which means that innovation and absorptive capacity can
reinforce each other. Certainly the innovative output will be turned into the external
knowledge which will be a resource for other companies after a period. We focus on
and study the relation between the results of the absorptive capacity and innovation
performance mainly. In our research, absorptive capacity is defined as a firm's
learning capability. Also Tsai (2001), Lane & Klavans (2005) has examined the
relation between absorptive capacity and innovation performance. Fallowing this
clue, in our research we bring into absorptive capacity as mediating variable. We
therefore hypothesize as follows:
H3: There is a significant relationship between a company's level of network
competence and its absorptive capacity.
H4: There is a significant relationship between a company's level of absorptive
capacity and its innovation performance.
2.3 Network Position
There are some evidences shows positive relationship between network position
and innovation from a network perspective (Tsai, 2001). Tsai (2001) points out that
in an intraorganizational network a higher centrality is significantly and positively
related to innovation. This finding may also apply in an interorganizational
situation. Network position is a descriptor of ''social structure'' and play important
role in networks (Coleman et al., 1990; Tsai & Ghoshal, 1998). Position can
enhance actor's capability to develop innovative or creative value to achieve
specific goals. Different network positions allow different levels of access to
information or knowledge. We therefore hypothesize as follows:
H5: There is a significant relationship between a company's network position
and its absorptive capacity.
Information and knowledge can viewed as external resources. Central network
positions offer more opportunities to access these resources than peripheral
positions. These resources represent “fuel” in the innovation process, driving
innovation performance (Tsai, 2001). We therefore hypothesize as follows:
H6: There is a significant relationship between a company's network position
and its innovation performance.
For further test which network position to the last influences innovation most, some
variables were selected to observe.
2.3.1 Direct Ties and Innovation Performance
Direct ties could affect a firm's innovative output positively (Ahuja, 2000), and
this is because direct ties provide three substantive benefits: First, direct ties
facilitate knowledge sharing (Berg, Duncan, & Friedman, 1982). When
collaboration relationship exists among firms, the relative industry knowledge is
