Construction Approaches of Enterprise Innovation Network from the Perspective of Social Network

Guanghe HAN, Siqi LI, Jiayu ZHOU

College of Economics and Management, Heilongjiang Bayi Agricultural University, Daqing 163316, China

Abstract As an important means for enterprises to promote technological progress, product development and service level, innovation has an absolute role in enhancing enterprises’ innovation strength and market strength. In the context of frequent and rapid product replacement and shortened technological innovation cycle in modern society, through the embedding of social networks, forming platforms for higher education institutions, governments, capital markets, research institutions and intermediary links to promote the integration of innovation and capital development and make the most of every resource has become an important way. From the perspective of social network, the methods and necessary approaches for the establishment of enterprise innovation network are studied in this article.

Key words Enterprise innovation, Social network, Construction method, Path

1 Introduction

1.1 Construction of vertical innovation networkVertical innovation network refers to an innovative network platform built from top to bottom through hierarchical structure under the organization of the government or relevant authorities. The goal of its construction is to improve the effective integration of resources and strengthen the effective integration of innovation and capital under the entire social network. The main purpose is to build a set of enterprise-oriented and market-oriented innovation platform with effective integration of industry, academia and research, so as to continuously strengthen independent innovation capabilities and capital utilization.

As the construction of vertical innovation network platform has the characteristics of cross-level and multi-field, it is necessary to rely on the policies of the government or relevant departments with absolute authority and organizational resources. The government conducts top-down compulsory connection of government, scientific research institutions, higher education institutions and enterprises and other organizations mainly through measures such as policy support, resource investment and directional guidance to build a top-down vertical innovation network. The vertical innovation network platform is essentially a national development framework for enterprises, knowledge innovation system and related capital markets, and it is constructed by government to strengthen the development and coordination of technological innovation in certain area or field through relevant systems and regulations. Faced with the needs of the national vertical innovation platform, enterprises must actively participate in it to obtain more R&D funds, technology, information,etc., thereby continuously strengthening scientific research and innovation capabilities and shortening the product development cycle.

1.2 Construction of horizontal innovation networkHorizontal innovation network is a social network innovation platform spontaneously organized by scientific research institutions, colleges and universities and related companies under the demand of innovation. All the members are in a state of voluntary and fairness, with equal status and power. There is no mandatory top-down hierarchical relationship.

A horizontal innovation network platform should allow participants to exchange and integrate information, technology and resources based on a cooperative platform. Since the construction of horizontal innovation network platform has a high voluntary principle, when exchanging and converging based on the same platform, it can ensure maximum fairness, thus enhancing the enthusiasm of the participating subjects.

2 Development path of enterprise innovation network construction from the perspective of social network

When building an enterprise innovation network from the perspective of social network, like enterprise development, it is not static in the same way. Instead, it has formation period, growth period, maturity period and replacement period. The development law of enterprise innovation network is shown in Fig.1. Out of the control range of the enterprise development force, the discussion is mainly based on the network architecture of the enterprise’s horizontal spontaneous organization.

2.1 Formation periodDuring the period of network formation, several relatively discrete members begin to contact for some need, but their contact is relatively limited. The main demanders and initiators of the entire network are in the position of intermediaries. While organizing the transformation and integration of resources, they also provide information references for other interested parties. During the formation period, the size of network is often small, and it is impossible to build a strong overall network specification. Therefore, interested parties are hesitant to enter or hold. This is because a post-technical transformation will require higher costs. Enterprises are in the selection stage, and they often hold a wait-and-see attitude towards resource input. What’s more, the network rent in this period is negative, and companies have limited operating performance after joining the network. Therefore, the test on the development of the entire network platform during this period is greater.

Fig.1 Development law of enterprise innovation network

2.2 Growth periodAfter the development of the enterprise innovation network reaches theK1point, it will enter a new rapid growth period. During this period, as new members continue to enter, new connections will emerge in internal relations, and the scale of cooperation will continue to increase. At the same time, as the interaction between the subjects becomes more frequent, most of the weaker connections in the past will be converted into strong connections, and communication activities of internal subjects will also transition from creative to problem-solving. The companies in this period are gradually focusing on the planning of goals.

2.3 Maturity periodAfter the influencing factors of members’ participation and retreat are fully absorbed, the growth rate will continue to slow, and the innovation network can also keep running smoothly in the dynamic relationship of members. When the efficiency boundary of the innovation network reaches the extremumK3, the entire enterprise innovation network has entered a maturity period. During this period, as the interaction between the main bodies is more frequent and close, most weak connections will turn into strong connections. As the structural holes are fully developed and utilized by the members, the advantages and function space will gradually weaken, or even disappear. Simultaneously, as the scope of communication increases, each main body of the enterprise network will gradually develop to the top of a certain field. Each of them develops on a link in the value chain of a certain field, eventually making the division of labor exquisite and the connections closer.

2.4 Replacement periodDuring the replacement period of the enterprise innovation network, the emergence of interlocking phenomenon hinders the entry of external heterogeneous resources. When the new technology in the external environment gradually matures and the new market occupies a certain share, the existing advantages of the network are reversed to disadvantages,e.g., the decline of the Innovation Network of Route 128, Boston. On this basis, Uzzi proposed that when a network is a combination of embedded connections and general market connections, the two are complementary, and one of them helps overcome the limitations of the other. Therefore, the replacement of the network also brings opportunities for the upgrade of the innovative network. Some companies with high structural autonomy will take the lead in breaking out of the network and actively transforming, and thus, weak connections with external groups emerge to build channels for external information, assuming the role of "information bridge" again. The innovation network enters the stage of secondary evolution.

3 Conclusions

In summary, when building an enterprise innovation network from the perspective of social network, there are generally two important ways of vertical innovation network and horizontal innovation network. In general, both approaches have their own advantages and disadvantages, and there is no contradictory relationship in actual operation. Therefore, related companies can actively participate according to their own needs. But in the process of participation, since the development path has certain variability, related companies must fully grasp this, so as to draw on advantages and avoid disadvantages according to the development status of different periods.