Is the Impact of Multiple Network Embeddedness on Innovation Unconditional: Innovation Under the Institutional Voids

Abstract

The imbalance between market level and intellectual property rights leads to institutional voids. However, the relationship between multiple network embeddedness and innovation under the institutional voids remains unclear. Using patent grants information of electronic industry from 2000 to 2016 and firms' credit information of China, this paper explores the relationship between multiple network embeddedness and innovation performance as well as the moderate effect of institutional environment. Though the negative binominal models it finds that both innovation network embeddedness and knowledge network embeddedness have significantly positive effects on innovation performance. However, knowledge network embeddedness has only a weak impact on innovation performance in high marketization level. According to the quadrant analyzing method, the paper further investigates the relationship between network embeddedness and innovation performance under various combinations of institutional factors. The result shows that the positive impact of knowledge network embeddedness on innovation performance is contingent on high intellectual property protection and low marketization level.

Keywords: Innovation network, Knowledge Network, Innovation Performance, Intellectual property protection, Market level