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The Relationship of Local & Extra-local Corporate Social Capital and Innovation Performance

Author: ShiJunNa
Tutor: WeiJiang
School: Zhejiang University
Course: Business management
Keywords: Corporate Social Capital inside&outside of Cluster Explorative Learning Exploitative Learning Innovation Performence
CLC: F272
Type: Master's thesis
Year: 2011
Downloads: 111
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Abstract


Along with the process of globalization, lots of industrial clusters, which once created economic miracle, encountered with developmental crisis. It’s crucial for them to stimulate the transformation of industries and technological upgrading. Therefore, innovation capability becomes the decisive force for sustainable development. While the key of improving the innovation performance of cluster lies in the establishment of learning network and realization of learning effect. For those leading companies, the following questions should be figured out:what kind of learning paradigm should be adopted to realize radical innovation, in order to endure long term development; how should enterprises leverage the limited resource reasonably to establish proper corporate social capital, thereby benefit for grabbing resources for innovation.In this paper, lots of related studies were reviewed. Then based on the spatial view, the corporate social capital of cluster is divided into two types:Local corporate social capital and extra-local corporate social capital. Further on, this paper proposes hypothesizes of relationship between corporate social capital and innovation performance, and explores the influence mechanism of explorative learning and exploitative learning on corporate social capital and innovation performance.Based on theoretical study, three leading companies of Shaoxing’s Textile cluster were chose for explorative case study. Through which, the study model were established. Then, the questionnaire were designed based on literature research and interviews, and further adjusted according to feedback from both enterprises and other scholars. Three ways were used for sending out questionnaires which totally brought back 169 valid ones. Diversified methods were used for analyzing the data, including descriptive statistics, factor analysis and structural equation modeling.The main conclusions of this study are as followings. First, local & extra-local corporate social capital have distinctive effect on the two paradigm of organizational learning. For leading companies, their unique social network would cause extra-local social capital beneficial for explorative learning, while local social capital beneficial for exploitative learning. For the former one, the structural and relational dimension have prominent effect, however, the cognitive dimension doesn’t show obvious influence. For the latter one, all of the three dimensions show remarkable effect on exploitative learning. To take one step ahead, explorative learning has positive effect on radical innovation, while exploitative learning has negative effect because of occupying resources.Finally, this work suggests those leading companies should especially focus on establishment of extra-local corporate social capital, in order to impulse the innovation and technological upgrading of the whole cluster.

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CLC: > Economic > Economic planning and management > Enterprise economy > Enterprise planning and management decision - making
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