The Influence of Network Capability and Knowledge Sharing on Innovation Performance of Technology-Based Smes

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Yan Zhang
Chanakiat Samarnbutra
Chen Jiakui

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          With the adjustment of China's economic structure, a large number of small and medium-sized enterprises (SMEs) with novel structures have emerged, absorbing a significant amount of knowledge and talents, and becoming a new growth point for the country's economic development. This study aims to explore the direct effect of network capability on the innovation performance of technology-based SMEs and the mediating role of knowledge sharing in this relationship. A quantitative analysis approach was adopted, utilizing questionnaires as the primary research tool. Data were collected from 228 technology-based SMEs in China, and regression analysis methods were employed to investigate the relationships between the variables. The findings reveal that: (1) Network capability, including its four dimensions - network planning capability, network management capability, network utilization capability, and network position capability - has a positive impact on innovation performance. (2) Network capability affects the innovation performance of technology-based SMEs through knowledge sharing (explicit and implicit) between enterprises and partners. (3) Explicit and implicit knowledge sharing play a full or partial mediating role in the relationship between network capability and innovation performance of technology-based SMEs. The results highlight the importance of developing strong network capabilities and fostering knowledge sharing practices to enhance the innovation performance of technology-based SMEs in China.

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