Industrial Networks in the Context of Chinese Indigenous Innovations: A Case Study in the Chinese Information and Communications Technology Industry

Abstract: Purpose: The purpose of this study is to deepen the understanding of industrial networks in the context of Chinese indigenous innovation policies. More specifically, it is the intention to explore which relationships of Chinese ICT firms with various business and non-business actors can facilitate directly or indirectly its innovativeness. Attention is also paid to the impact of overall innovation policies on the interactions within a Chinese business network. Methodology: Following an abductive research approach to relate theory to research, a case study design with the main data collection method of qualitative interviews was used to gather empirical data from different actors within the case network in China. This method was complemented by using secondary data in form of policy documents and online inquiries as additional source of information. Theoretical Perspective: Well-established industrial relationship marketing theory was employed as a theoretical basis for this study. The main frameworks used were the ARA-Model and the political embeddedness theory to characterise the substance and the effects of interactions and relationships between business and non-business actors. Conclusion: The thesis concludes with four main concepts of network innovation entities which reflect the way different business actors organise their relationships. Some of the key findings were that a cluster of a close collaboration between a mature company, a university and a political actor can be the driver for the innovativeness of start-ups. Furthermore, a university was identified as the entrepreneurial origin of young start-up companies and as pivotal research and technology competence source for various actors. Also business to business collaborations contributed to a better incubation service for start-up companies. In all instances, businesses were found to interact with local and central government actors resulting in better policy making and implementation. Certain key funding policies were identified to represent a crucial contribution to innovative product development of firms in the empirical context. Limitations: Given the fact that the qualitative case study only served to explain the phenomenon in the certain empirical context of the ICT industry in China, it is not applicable to other settings. This opens up opportunities for further research on business networks in the context of indigenous innovations in China.