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Technology Proximity Mechanism and Collaborative Innovation Orientation: How to Coordinate Multiple Subsidiaries’ Innovation Strategies?

Author

Listed:
  • Ben Zhang

    (Huazhong University of Science and Technology, Hubei Province
    Huazhong University of Science and Technology)

  • Xin Liu

    (Southwest Jiaotong University, Sichuan Province)

Abstract

Technology proximity plays a critical role in the innovation ecosystem of an enterprise group that supports subsidiaries’ collaborative innovation. To explore the technology proximity mechanism (TPM), this study identified three characteristics of the TPM, including strategical tendency, unbalanced distribution, and hierarchical convergence, and carried out an empirical research based on the adjacency matrix of the China Railway Rolling Stock Corporation (CRRC). Through the grouped quadratic assignment procedure (QAP) regression models, this study tested the hypotheses that indicate the relationship between the local proximity networks and the overall proximity network. The research findings show that the allocation of local proximity networks is significantly associated with the subsidiaries’ coordination. Management implications drawn in this study illustrate that optimizing the network structure of technology proximity is necessary for promoting stability and sustainability of the innovation ecosystem of the enterprise group.

Suggested Citation

  • Ben Zhang & Xin Liu, 2024. "Technology Proximity Mechanism and Collaborative Innovation Orientation: How to Coordinate Multiple Subsidiaries’ Innovation Strategies?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 706-731, March.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-023-01100-7
    DOI: 10.1007/s13132-023-01100-7
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