Position and Value: Dynamic Network Capability, Dynamic Positioning, and Innovation in Complex Product Domain

Network position has long been a focal point for network researchers. In today's dynamic environment, firms' positions within networks change over time. While evidence suggests that dynamic positioning is important for innovation, the exact relationship between the two remains unclear. Furthermore, empirical studies on how firms can improve their positions within networks are limited, significantly hindering the practical value of network position research. This article draws on network dynamics and social embeddedness theory to integrate dynamic network capability and the type of product innovation—modular innovation and architectural innovation—into a model that examines the driving and action paths of dynamic positioning in the complex product domain. Results from a sample of 270 complex product firms across eight key cities in China indicate that dynamic network capability is positively correlated with dynamic positioning, characterized by increased centrality and structural holes. These enhanced positions, in turn, positively influence innovation. In addition, the study finds that modular innovation strengthens the positive impact of increased centrality on innovation while architectural innovation weakens this effect. However, neither modular innovation nor architectural innovation moderates the relationship between increased structural holes and innovation. This study provides a dynamic perspective on network position, offering valuable insights and guidance for firms seeking to enhance their positions and drive innovation in the complex product domain.

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Publication Details

Journal
IEEE Transactions on Engineering Management
Published
2024-11-22
DOI
https://doi.org/10.1109/tem.2024.3504740
Citations
6
Primary Topic
Business Strategy and Innovation
Type
article
Field-Weighted Citation Impact
3.33
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article

Position and Value: Dynamic Network Capability, Dynamic Positioning, and Innovation in Complex Product Domain

Chunxiao Xie, Sahira Falih Muhammad, Mingzhen Zhang, Naiding Yang et al.
6 citations
IEEE Transactions on Engineering Management
Business Strategy and Innovation
3.33
article

Position and Value: Dynamic Network Capability, Dynamic Positioning, and Innovation in Complex Product Domain

Chunxiao Xie, Sahira Falih Muhammad, Mingzhen Zhang, Naiding Yang, Yan Wang
article en
6 citations

Abstract

Network position has long been a focal point for network researchers. In today's dynamic environment, firms' positions within networks change over time. While evidence suggests that dynamic positioning is important for innovation, the exact relationship between the two remains unclear. Furthermore, empirical studies on how firms can improve their positions within networks are limited, significantly hindering the practical value of network position research. This article draws on network dynamics and social embeddedness theory to integrate dynamic network capability and the type of product innovation—modular innovation and architectural innovation—into a model that examines the driving and action paths of dynamic positioning in the complex product domain. Results from a sample of 270 complex product firms across eight key cities in China indicate that dynamic network capability is positively correlated with dynamic positioning, characterized by increased centrality and structural holes. These enhanced positions, in turn, positively influence innovation. In addition, the study finds that modular innovation strengthens the positive impact of increased centrality on innovation while architectural innovation weakens this effect. However, neither modular innovation nor architectural innovation moderates the relationship between increased structural holes and innovation. This study provides a dynamic perspective on network position, offering valuable insights and guidance for firms seeking to enhance their positions and drive innovation in the complex product domain.

IEEE Transactions on Engineering ManagementVol. 72
Northwestern Polytechnical University (CN), Lanzhou Jiaotong University (CN), Southeast University (CN)
Industry, innovation and infrastructure
Openalex Percentile: Top 7%
Business Strategy and Innovation
3.33
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