Alliance network and innovation: evidence from China's third generation mobile communications industry

This paper seeks to explore the evolution of a third generation mobile communications (3G) industry based on TD‐SCDMA technical standard in China through the lens of network analysis.

The authors argue that inter‐firm alliances help companies gain and integrate internal and external resources and foster technical innovation. The paper analyzes alliance governance structures and governance mechanisms in particular, and shows how they protect and improve network‐based innovation capabilities and competitive advantages during a ten‐year period with the method of social network analysis and case studies.

The authors offer a theoretical model that incorporates cooperation among organizations, the maturity of the industrial chain, and the accumulation of organizational knowledge and social capital.

The paper offers a theoretical model of factors that contributes greatly to the development of technical innovation.