Research on Knowledge Transfer Networks, Enterprise Relationship Networks and Innovation in Traditional Industrial Cluster

Abstract

Knowledge transfer has significant impact on innovation performance and in SME clusters various relationships between enterprises is the main channel of knowledge transfer. Knowledge and information transfer through relationships and then promote the innovation activities, which is the primary way of traditional industrial SMEs to obtain innovation in China. This research bases on the practices of Foshan lighting cluster and constructs the whole network of formal member enterprises of Foshan Lighting Association. The goal of this article is to demonstrate the structural characteristics of knowledge transfer networks and to examine mainly through which enterprise relationship that explicit and tacit knowledge transfer and to demonstrate how the location of enterprise within the knowledge transfer network plays a key role in the innovation performance. Findings are that explicit knowledge transfers not only by the weak market ties but also by the strong social ties while the transfer of tacit knowledge mainly depends on the social ties. Centrality in both explicit and tacit knowledge networks has significant positive impact on the product and process innovation, however, the structure hole has non-significant influence on innovation performance.