Prior research on the strength of embeddedness ties in strategic networks in influencing innovation performance has produced inconsistent conclusions. In this paper, drawing on an investment perspective on firms¡¦ decision behavior, we argue that the ¡§control benefits¡¨¡Xanother characteristics of strategic networks¡Xalso affects firms¡¦ innovation performance. According to previous research, we adopt the speed of ¡§patent application¡¨ and ¡§market introduction of a new product¡¨ to measure innovation performance. Furthermore, we divide firms¡¦ innovation strategies into ¡§apply for a patent and introduce the new product to market later¡¨, ¡§patent the innovation and market introduction immediately¡¨ as well as ¡§introduce the new product to market and apply for a patent later¡¨.
We examine the relationship between the strength of enbeddedness ties and firms¡¦ innovation performance using the theoretical frames of game theory and real options. After the analysis of Cournot duopoly game model and real options approach, several findings are acquired as follows: (a) the higher the strength of embeddedness ties, the more likely the firm is to abandon the innovation strategy ¡§apply for a patent and introduce the new product to market later¡¨ and adopt innovation strategies ¡§patent the innovation and market introduction immediately¡¨ or ¡§introduce the new product to market and apply for a patent later¡¨; (b) if the firm adopts the innovation strategy ¡§apply for a patent and introduce the new product to market later¡¨, then the strength of embeddedness ties has a positive effect on the speed of market introduction of the new product, but the relationship between the strength of embeddedness ties and the speed of patent application is not sure; (c) if the firm adopts innovation strategies ¡§patent the innovation and market introduction immediately¡¨ or ¡§introduce the new product to market and apply for a patent later¡¨, then the strength of embeddedness ties has both positive and negative impact on the speed of ¡§patent application¡¨ and ¡§market introduction of a new product¡¨, and therefore the relationship between the strength of embeddedness ties and the innovator¡¦s innovation performance is indeterminable. The research findings indicate that the innovator may delay the application for patent or postpone the launching of a new product because of the ¡§control benefits¡¨ derived from different strength of embeddedness ties. These results have broad implications for future research on strategic networks and innovation.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0604105-114654 |
| Date | 04 June 2005 |
| Creators | Wu, Guo-Ciang |
| Contributors | Tong-Yuan Koo, Hsien-Tang Tsai, Iuan-Yuan Lu, Pao-Tiao Chuang, Tsuang-Yih Kuo |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0604105-114654 |
| Rights | campus_withheld, Copyright information available at source archive |
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