Knowledge Network Embeddedness, Absorptive Capacity, and Enterprise Innovation Performance: Evidence from Chinese Hi-tech Industry Clusters

Embedded innovation becomes a popular way to innovate for firms. But innovation activities are influenced by different kinds of knowledge networks: local knowledge networks and hyperlocal knowledge networks. This paper was conducted to explore the relationship among different kinds of knowledge network embeddedness, absorptive capacity and innovation performance using multivariable regression model approach. Analysis results showed that local knowledge networks and hyperlocal knowledge networks can promote enterprise innovation performance and there is mediation effect of absorptive capacity between knowledge network embeddedness and enterprise innovation performance. Recommendations for enhancing enterprise innovation performance were also presented for the enterprises.