The influence of corporate networks on competitive advantage: the mediating effect of ambidextrous innovation

Abstract

ABSTRACT Corporate networksare important channels through which external resources can be acquired, but the effect of corporate networks on competitive advantage remainsunclear. Therefore, weuse a structural equation model to examinethe relationship betweencorporate networks, ambidextrous innovation, and competitive advantage with a sample of 384 high-tech enterprises gathered from Zhongguancunin Beijing and Shenzhen High-tech Industrial Development Zone. The results show that both corporate networks and ambidextrous innovationhadpositive effects on competitive advantage; moreover, the relationship between corporate networks and competitive advantage was mediated only by ambidextrous combination. The results of the multi-group analysis also show corporate networks had a stronger effect on manufacturers’ competitive advantage andambidextrous combinationthan that of service enterprises; while the ambidextrous combination had a greater effect on competitive advantages of service enterprises. These findings suggest that enterprise executives should pay more attention toambidextrous combinationsto increase the efficiency of corporate networks,and alsosuggest that the Chinese Government should use manufacturing companies in pilot schemes for innovative reform due to their resource advantage.