The Sustainability of Technological Innovation in China: From the Perspective of Network Relationships

Abstract

Sustainable technological innovation is a key factor for companies seeking competitive advantage. Against the backdrop of the Sino-US trade war, the US government has been severely impeding Chinese enterprises’ technological innovation with its trade policies. Consequently, how to ensure the sustainability of technological innovation is a huge challenge for Chinese enterprises. In the Chinese context of a relationship-based society, network relationships have been instrumental in the process of technological innovation. This study constructs a theoretical model, with market dynamics as the moderator, exploring the impact of three dimensions of network relationships (network relationship selection, network relationship maintenance, and network relationship utilization) on sustainable technological innovation via an empirical analysis of 208 Chinese technology companies. The results of this study indicate that network relationship selection, network relationship maintenance, and network relationship utilization have a positive effect on sustainable technological innovation. Furthermore, the moderating effect of market dynamics on the association between network relationships and sustainable technological innovation is also confirmed. This study contributes to resource-based theory and dynamic capability theory by demonstrating how network relationships influence sustainable technological innovation in varying market dynamics. This study provides a better understanding of the role of network relationships in sustainable technological innovation and suggests that managers should pay attention to the selection, maintenance, and utilization of network relationships in order to achieve sustainable technological innovation. Additionally, managers should also consider market dynamics when making decisions related to network relationships, as they can have a significant impact on sustainable technological innovation.