Knowledge-based Dynamic Capabilities and Innovation in Networked Environments

Purpose – The purpose of this paper is to clarify the concept of dynamic capabilities from the knowledge‐based perspective and investigate the mechanisms of dynamic capabilities on innovation performance in networked environments.Design/methodology/approach – This paper designed a seven‐point Likert questionnaire measuring the dynamic capabilities, innovation performance and network embeddedness and a sample of 218 Chinese manufacturing firms were surveyed. Structural equation modeling method was used to statistically test the theoretical hypothesis.Findings – Significant relationships were found between dynamic capabilities and innovation performance and knowledge combination capability played a mediating role in this relationship. For the links between network embeddedness and dynamic capabilities, knowledge acquisition capability was affected mainly by relational embeddedness and the diversity of network and joint problem solving contributed much to knowledge combination capability.Research limitations...

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