Effects of relational embeddedness on knowledge acquisition: An empirical study in China

This paper aims to explore the influential mechanism of upstream and downstream relational embeddedness on knowledge acquisition in different context of environmental dynamics. The upstream relational embeddedness is evaluated by firm´s trust, information sharing and joint problem solving with its suppliers, and the downstream relational embeddedness is evaluated by such attributes with clients. Based on the survey data from 157 Chinese manufacturing firms analyzed with multivariate linear regression, the empirical results show that upstream and downstream relational embeddedness has positively effects on knowledge acquisition through mutual trust, information sharing and joint problem solving. Moreover, high technological dynamics enhances the effects of upstream embeddedness. The results imply that firms should participate in manufacturing networks and manage inter-firm relationships properly to acquire new knowledge and achieve competitive advantages.