The Dynamic Effects of Firm Network on Innovation with the Development of Technological Capability: A Case Study

Abstract

This study examines the role of different networks on the development of the firm through a case study. We type the development of firm according to technological capability. Specially, the technological capability can be divided into three stages including technology imitation, system integration and endogenous innovation from the evolving aspect. The network includes three types of social network, co-opetition network and cooperative technology network. From the case, we argue that different types of networks are more important for firm development. In particular, we suggest that social network, co- opetition network and cooperative technological network should be match the technology imitation stage, system integration stage and endogenous innovation stage of technological capability respectively and dynamically evolved with the growth of technological capability.