TYPE Original Research

PUBLISHED 22 March 2023

DOI 10.3389/fenvs.2023.1154162

Research on network capacity,

OPEN ACCESS absorptive capacity and service
EDITED BY
Irfan Ullah,
Nanjing University of Information Science
innovation performance of
and Technology, China

REVIEWED BY
technology business incubators
Muhammad Zeeshan,
Liaoning Technical University, China
Stavros Sindakis,
—based on PLS-SEM and fsQCA
Hellenic Open University, Greece

*CORRESPONDENCE
methods
Hao Dong,
[email protected]
Hao Dong 1,2*, Ruiyi Murong 2 and Jian Li 1,2
SPECIALTY SECTION
1
This article was submitted to Institute of Land Engineering and Technology, Shaanxi Provincial Land Engineering Construction Group
Environmental Economics Co., Xi’an, China, 2Shaanxi Provincial Land Engineering Construction Group Co. Ltd., Xi’an, China
and Management,
a section of the journal
Frontiers in Environmental Science

RECEIVED 30 January 2023 Introduction: In the new economic normal, technology incubators are an
ACCEPTED 06 March 2023
PUBLISHED 22 March 2023
important support to achieve the growth of strategic emerging enterprises. On
the basis of resource based theory, organizational learning theory, inter-
CITATION
Dong H, Murong R and Li J (2023), organizational relationship theory, and network capability theory, this study
Research on network capacity, constructs a theoretical framework and hypotheses of the impact of network
absorptive capacity and service capability within the “resource-capability-relationship” perspective, absorptive
innovation performance of technology
business incubators—based on PLS-SEM capacity on service innovation performance of technology business incubators.
and fsQCA methods.
Front. Environ. Sci. 11:1154162. Methods: This study uses 234 Chinese incubators in the incubator network as
doi: 10.3389/fenvs.2023.1154162 samples and applies partial least squares structural equation modeling (PLS-SEM)
COPYRIGHT and fuzzy-set qualitative comparative analysis (fsQCA) to explore the questions
© 2023 Dong, Murong and Li. This is an mentioned above.
open-access article distributed under the
terms of the Creative Commons Results: The results verify the relationship between network capacity, absorptive
Attribution License (CC BY). The use,
capacity, and service innovation performance. Furthermore, the results yield four
distribution or reproduction in other
forums is permitted, provided the original paths that lead to high service innovation performance, such as “network
author(s) and the copyright owner(s) are capability orientation” and “high absorption orientation”, which are different
credited and that the original publication
combinations of network capacity and absorptive capacity.
in this journal is cited, in accordance with
accepted academic practice. No use,
Discussion: The research results are important for improving the innovation
distribution or reproduction is permitted
which does not comply with these terms. performance of technology incubator services and ensuring the stable and
effective operation of incubated enterprises.

KEYWORDS

network capability, absorptive capacity, technology business incubators, service

innovation performance, fsQCA, PLS-SEM

1 Introduction
Technology business incubators have become an institutionalized part of innovation-
driven policies worldwide to promote innovation, entrepreneurship, and economic growth
(Mian et al., 2016). Technology business incubator, as an important carrier of industry and
enterprise innovation capability improvement and innovation system construction in the
new normal situation of “Mass Entrepreneurship and innovation” (Fu et al., 2021). It has
created excellent professional service platforms such as resource knowledge and technology

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for China’s small, medium and micro technology incubators, incubator networks, there is a paucity of scholarly research on
promoting the incubators to rapidly grow into gazelle enterprises, how network capabilities affect innovation performance through
accelerating the transformation and innovation of traditional absorptive capacity. Therefore, this study aims to answer the
industrial structure (Hausberg and Korreck, 2021). By the end of following questions:
2019, there were more than 7,000 technology business incubators
worldwide, most of which are supported by local and central • How does network capacity affect innovation performance?
governments Li. (2020). Traditional technology business • How does absorptive capacity affect innovation performance?
incubators provide incubators with the resources and services • What is the relationship between network capacity and
necessary for business operations (infrastructure management absorptive capacity?
services and technical know-how, etc.). At the same time, it helps • How do network capability and absorptive capacity jointly
incubators achieve resource integration and supports incubators to contribute to innovation performance?
survive and grow in the fierce market competition (Tang et al.,
2021). The upgrade and restructuring of technology business In view of the special role of technology business incubators in
incubators through service innovation is the best way and most the process of innovation, entrepreneurship, and industrial
feasible path for incubators to gain heterogeneity, differentiation, transformation and upgrading, this study constructed a
and sustainable competitiveness, which is expected to break through theoretical analysis framework of “resource-capacity-relationship”
the traditional “nanny” service model, achieve leapfrog based on strategic management theory, and resource-based theory,
development, enhance the service capacity of the incubator and network capability theory, and absorptive capacity theory. Taking
accelerate the growth of incubators (Yuan et al., 2022). 234 Chinese incubators as the research object, this study discusses
Based on social network theory, Granovetter. (2008) argues that the impact of the relationship between network capability and
all economic activities of incubators are embedded in social service innovation performance of technology business incubators
networks of relationships. The study pointed out that an external under the coupling of “resource-capability-relationship” and
social network of relationships is an important vehicle for incubators empirically tests the mediating role of absorptive capacity. In this
to obtain scarce resources such as knowledge and to carry out study, fuzzy set qualitative comparative analysis (fsQCA) and
innovative activities (Adler and Kwon, 2002). It was found that structural equation modeling (PLS-SEM) was used for data
through incubator networks, incubators gained more opportunities analysis. It was found that network resource patching ability,
for business collaboration and gained more access to scarce network cross-organization learning ability, network relationship
resources, which in turn improved innovation performance interaction ability, potential absorptive capacity, and actual
(Bruneel et al., 2012; Ayatse et al., 2017). Thus, it is clear that absorptive capacity impact service innovation performance. In
how to improve the innovation performance of incubators in addition, absorptive capacity mediates the relationship between
incubator networks is an important issue facing current research. network capability and service innovation performance. This
Lavie. (2007) pointed out that firms with similar network partners study helps to deepen the understanding of incubators to realize
have a large gap in the innovation performance they obtain, which is network capability and service innovation performance through
mainly due to the differences in the network capabilities of firms. absorptive capacity, and has profound theoretical and practical
However, based on the perspective of incubators in incubator value.
networks, few scholars have further explored the mechanisms The rest of this paper is organized as follows: Section 2 provides
through which network capabilities affect innovation the research hypothesis and theoretical framework construction.
performance (Hoffmann, 2007; Lavie, 2007), resulting in the role Section 3 describes the data and method. Section 4 presents the
of network capabilities of incubators in incubator networks remains result and stability checks. Section 5, we present the discussion of the
full of unknowns. findings and research implications. Section 6, we present
Based on resource-based theory, Barne. (1991) argues that conclusions. Finally, in Section 7, we set forth the limitation of
resource acquisition and development help incubators enhance the research and the direction of the next research.
their competitive advantage. It was found that external resources
acquired through social networks can effectively contribute to the
competitive advantage of incubators only if they form a 2 Theoretical analysis and hypothesis
complementary effect with the internal resources of incubators
(Lin et al., 2012; Wu et al., 2021). However, scholars studying the 2.1 Theoretical framework of network
internal capabilities of incubators hold a different view, arguing that capabilities in the framework of “resource-
the network theory school overemphasizes the role of external ties in capability-relationship"
influencing the innovation performance of incubators while
ignoring the central role played by absorptive capabilities. The dynamic and complex cooperative relationships of service
Further research has found that incubators differ in their innovation networks require technology business incubators to use
absorptive capacity and that it is these differences in the capacity their network capabilities for reasonable management and control to
that leads to differences in the innovation performance of incubators achieve the strategic goals of service innovation (Franco et al., 2018;
(Miranda et al., 2022). Zahra and George (2002) suggest that firms Chereau and Meschi, 2021; Cepeda-Carrion et al., 2022). Since Ritter
with higher absorptive capacity have better innovation performance et al. (2004) proposed the concept of network capability, many
and will have a much better chance of winning in the competitive scholars have conducted extensive research on the structure of
market. However, based on the perspective of incubators in network capability dimensions (Ávila, 2022), the influence

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mechanism between network capability and other weighting factors 2.1.1 Network resource patching ability and service
(Yu and Chong, 2005) and the mechanism of network capability innovation performance
operation in different contexts from multiple perspectives and levels If incubators lack network resource patching ability, it will be
(Al-Mubaraki and Busler, 2017), but there is a lack of integration difficult to identify innovative activities and opportunities in the
research from a multi-theoretical coupling perspective (Branstad incubator network. Bøllingtoft and Ulhøi. (2005) proposed that
and Saetre, 2016). This study deconstructs network capabilities from network resource patching ability is the basic ability of incubators to
three aspects: Resource-based theory, capability theory, and inter- deal with network changes. Through this ability, incubators can better
organizational relationship theory. The resource-based theory understand the network environment. Teece. (2007) found that
argues that heterogeneous resources are the root cause for firms network resource patching ability helps incubators to discover the
to gain competitive advantage (Barney, 1991). Capability theory value and potential of partners in the incubator network from a
argues that value arises from a firm’s ability to allocate strategic level, and then grasp the evolution trend and development
heterogeneous resources (Grant, 1991). Inter-organizational direction of the incubator network (Theodorakopoulos et al., 2014).
relationship theory suggests that “relational transactions” can Therefore, incubators with strong network resource patching ability can
spontaneously interact with each other from disorderly and better perceive the strategic opportunities in the incubator network (van
chaotic external relationships, effectively integrating the Weele et al., 2020), so that the services innovation performance of the
absorbing capabilities distributed in innovation network incubator can be effectively improved. Based on this, the following
relationships and creating new capabilities (Oliver and Ebers, hypothesis is proposed.
1998). In the innovation-driven context, the innovation of
technology business incubator services is essentially dependent on Hypothesis 1. (H1): Network resource patching ability positively
the incubator’s ability to effectively allocate and coordinate the affects service innovation performance.
heterogeneous resources, knowledge, and relational rents in the
external innovation network with reasonable network resources, 2.1.2 Network resource patching ability and service
and then realize internal and external knowledge exchange, innovation performance
integration and engineering. This paper integrates resource-based Liebeskind et al. (1996) argued that network cross-organization
theory, dynamic capability theory, and inter-organizational learning ability can help incubators complete a relationship network
relationship theory, and proposes a theoretical analysis with a sufficient number and type of partners. Oliver and Ebers.
framework of “resource patchwork, absorption capability, and (1998) found that enterprises can effectively manage the linkage
relationship interaction” from the perspective of external network density of incubators and network partners through network cross-
relationship, referred to as “resource, capability, and relationship” organization learning ability. Ndubisi et al. (2020) suggested that the
theoretical framework. network cross-organization learning ability of incubators positively
Network resource patching ability refers to the incubator’s ability to influences firms’ service innovation. Based on this, the following
fully utilize and develop internal and external resources, and to hypothesis is proposed.
reorganize and absorb existing resources (Vicentin et al., 2021). The
network resource patchwork ability of science and technology business Hypothesis 2. (H2): Network cross-organization learning ability
incubators not only creates the environment but also co-evolves with positively affects service innovation performance.
the external environment. It can help incubators identify the form, type,
and substitution of resources and carry out resource evaluation, 2.1.3 Network relationship interaction capability
providing strong resource base support for the growth and and service innovation performance
development of incubators, and then promoting the service Tsai. (2001) suggests that network relationship interaction
innovation of science and technology business incubators. Network capability facilitates knowledge transfer between incubators and
cross-organization learning ability refers to the technology business partners, thus promoting innovation. Ford. (1980) found that the
incubators to provide the incubated enterprises innovation learning, deepening of partnership helps to complete long-term technology
and the guest room and third-party professional service (such as project collaboration and gives firms a competitive advantage.
technical support, talent recruitment, talent training, production Dhanaraj and Parkhe. (2006) found that stable relationships between
management, marketing management, business consulting, etc.) the partners help incubators’ knowledge acquisition and innovation
ability of to the incubated enterprises rapidly correct organizational performance. Based on this, the following hypothesis is proposed.
behavior and change the backward organizational routines, graduated
with an acceleration in the incubated enterprises and growth (Zhan and Hypothesis 3. (H3): Network relationship interaction capability
Xie, 2022). It aims to realize the innovation of technology business positively affects service innovation performance.
incubator service. Network relationship interaction capability refers to
the ability of technology business incubators to construct an external
value relationship network, which aims to build a high-quality network 2.2 Network capability and absorptive
relationship platform for incubators, accelerate the formation of an capacity
“active knowledge field” between incubators themselves and network
relationship partners, and promote incubators to quickly embed value The concept of absorptive capacity first appeared in a paper
relationship network. Better access to external heterogeneous resources, published by Cohen and Levinthal. (1990). Absorptive capacity is
specific knowledge, skills, services, etc., to accelerate the development of defined as an enterprise’s ability to identify, evaluate and absorb
incubated enterprises. external new knowledge and then apply it in commercial output.

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Zahra and George (2002) defined absorptive capacity as the dynamic Hypothesis 5b. (H5b): Network cross-organization learning
ability of enterprises to create and apply knowledge to obtain and ability positively affects actual absorptive capacity.
maintain competitive advantages, which has been recognized by
most scholars. Lane et al. (2006) proposed that absorptive capacity is 2.2.3 Network relationship interaction capability
the ability of enterprises to apply external new knowledge through and absorptive capacity
exploration, transformation, and development learning processes. As network capability at the relationship level, network relationship
Based on the research of Zahra and George (2002), this paper interaction capability can assist incubated enterprises to deal with,
summarizes absorptive capacity as the dynamic ability of coordinating, controlling, and deepening the connection with
enterprises to acquire, digest and transform external new partners (Mu and Di Benedetto, 2012). Ebers and Maurer. (2014)
knowledge and technology, and integrate it into commercial first proposed the concept of “relational absorptive capacity”, which
output. In this paper, absorptive capacity is divided into two integrates the connotation of network relationship interaction capacity
dimensions: potential absorptive capacity (knowledge acquisition and absorptive capacity. “Relational absorptive capacity” indicates that
and digestion) and actual absorptive capacity (knowledge the absorptive capacity of an enterprise must be placed in the
conversion and application). The following will study the cooperative relationship of network partners to effectively play the
influence on the two dimensions of absorptive capacity from the role of network relationship interaction capacity. That is, network
three dimensions of network capacity. interaction ability has a significant impact on absorptive capacity.
Yli-Renko et al. (2002) found that for incubators and partners, a
2.2.1 Network relationship interaction capability high-level network relationship can not only guarantee the efficiency
and service innovation performance of information acquisition but also improve the quality of information
As a strategic network capability, network resource patchwork exchange, thus enhancing the potential absorption capacity. Uzzi.
capability focuses on the strategic thinking of incubators’ networks (1997) pointed out that the network interaction ability of incubators
(Tavoletti, 2013). Dyer and Nobeoka. (2000) found that the ability to contributes to the communication and interaction between network
assemble network resources can further clarify the identity of incubators partners, thus promoting the transformation and application of external
in the enterprise network, to obtain in-depth information and knowledge of incubators and enhancing their actual absorption
knowledge, thus promoting knowledge acquisition. Mohr and capacity. Based on this, the following hypothesis is proposed.
Sengupta. (2002) proposed that the ability to put together network
resources can help incubators analyze the knowledge they need from a Hypothesis 6a. (H6a): Network relationship interaction capability
strategic perspective, enhance learning intention and motivation, and positively affects potential absorptive capacity.
thus promote the digestion and application of knowledge. Based on this,
the following hypothesis is proposed. Hypothesis 6b. (H6b): Network relationship interaction capability
positively affects actual absorptive capacity.
Hypothesis 4a. (H4a): Network resource patchwork capability
positively affects potential absorptive capacity.
2.3 Absorptive capacity and service
Hypothesis 4b. (H4b): Network resource patchwork capability innovation performance
positively affects actual absorptive capacity.
Potential absorptive capacity consists of knowledge acquisition
2.2.2 Network resource patching ability and capacity and knowledge digestion capacity (Zahra and George,
absorptive capacity 2002). Stock et al. (2001) proposed that knowledge acquisition
As the network capability at the structural level, network cross- ability can enable enterprises to have a deeper understanding of
organization learning ability can help incubators establish a relationship customers’ needs and further promote enterprises to develop new
network with a sufficient number of partners and diverse types (Mohr products in a more targeted manner. Dyer and Singh. (1998) found
and Sengupta, 2002). Through the network cross-organization learning that knowledge acquisition ability, on the one hand, promoted the
ability, incubated enterprises can select key partners and establish direct reduction of product defects in enterprises; On the other hand, shorten
connections with them to acquire more valuable knowledge, thus the product development cycle effectively and improve the innovation
promoting the acquisition and digestion of knowledge. Dyer and performance. Atuahene-Gima. (2003). believes that knowledge
Singh. (1998) found that network cross-organization learning ability digestion ability can help enterprises in the following two aspects:
helps incubated enterprises to establish a network of relationships, and first, it can help enterprises to speed up problem-solving in new product
promotes joint learning and knowledge exchange among partners, thus development; The second is to helps enterprises update the knowledge
promoting knowledge learning and transfer. Kohtamäki and Bourlakis. base in time so that the repetitive work can be effectively avoided. To
(2012) proposed that the network cross-organization learning ability sum up, the potential absorptive capacity can improve the service
builds a platform for mutual learning between incubators and partners, innovation performance of enterprises. Actual absorptive capacity
significantly improves the dynamic ability of network organizations, consists of knowledge conversion capacity and knowledge
and then promotes knowledge learning and application. Based on this, application capacity. Todorova and Durisin. (2007) believe that
the following hypothesis is proposed. knowledge transformation ability can not only help enterprises
restructure their cognitive structure, but also help enterprises get rid
Hypothesis 5a. (H5a): Network cross-organization learning ability of their dependence on knowledge path, to further enhance their
positively affects potential absorptive capacity. competitive advantages. Neergaard. (2005) proposed that knowledge

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FIGURE 1
Research model.

application is indispensable in the process of transforming resources design and compile questionnaires, and draws on the on-the-job
and information into new products or new ideas for enterprises. engineering master, MBA, EMBA, etc. A total of 65 students took the
Lichtenthaler. (2009) found in his study that to cope with changes pre-test, and based on the results of the pre-test, the items of the
in the external environment, enterprises can develop new products only questionnaire were perfected and revised to form the final
by continuously enhancing their knowledge conversion ability and questionnaire. The subjects of this survey are technology business
knowledge application ability. To sum up, the actual absorptive capacity incubator executives (chairman, general manager, and senior
can improve the service innovation performance of enterprises. Based management), executives of incubating companies, and core
on this, the following hypothesis is proposed. members of the innovation team. The research area involves
national technology business incubators such as Xi’an High-tech
Hypothesis 7. (H7): Potential absorptive capacity positively affects Industrial Park, Shaanxi Province, Qinchuangyuan Innovation
service innovation performance. Drive Platform of Xixian New District, Shaanxi Province, and
University Science and Technology Industrial Park, Shaanxi
Hypothesis 8. (H8): Actual absorptive capacity positively affects Province. From June to December 2021, the subject group 6 in-
service innovation performance. depth interviews were conducted with the research objects and
questionnaires were distributed.
The foundations of the study design are in the literature review
2.4 The mediating role of absorptive section. This study utilizes and adjusts scales from earlier studies in
capacity which the items and responses were measured range is from “very
dissatisfied” to “very satisfied” corresponding to the numbers “1”
This paper constructs the influence mechanism framework of to “7”. Table 1 lists the variables and their measurement methods
network capability, absorptive capacity, and service innovation used in this study. At the same time, a questionnaire survey was
performance of technology business incubators under the framework conducted on the target enterprises by E-mail. A total of
of “resource-capability-relationship”, as shown in Figure 1. 500 questionnaires were issued, 350 were finally recovered,
116 invalid questionnaires were removed, and 234 valid
questionnaires were finally obtained, with an effective rate of
3 Data and method 46.8%. The descriptive statistics of the sample are as follows: In
terms of gender, males and females accounted for 65.81% and
3.1 Data collection and variable 34.19%; From the scale of the surveyed enterprises, 10% have more
measurement than 500 employees, 20% have 301–500 employees, 25% have
151–300 employees, 25% have 50–150 employees, and 20% have
This paper focuses on the influence mechanism between less than 50 employees. In terms of positions surveyed, senior
network capacity, absorptive capacity, and service innovation executives account for 5.98%, department heads for 36.32%,
performance, uses the conceptual model proposed by multiple project managers for 42.73%, and innovation team members
observation variables to measure, draws on mature scales to for 9.97%.

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TABLE 1 Survey variables and measures.

Variable Measurement item Sources

Network resource patching ability Our enterprise can use the resources of the incubation network to develop solutions to new Senyard et al. (2009)
challenges such as the innovation needs of incubators

Our enterprise can cope with new challenges through the integration and utilization of existing
resources and incubation network resources

Our enterprise can effectively deal with the incubation problem by integrating and utilizing
existing resources that were originally used for other aspects

Network cross-organization Our enterprise can quickly and accurately gain valuable knowledge and experience from the Liebeskind et al. (1996)
learning ability incubation network

Our enterprise is good at coming up with creative improvement measures and solutions

Our enterprise can effectively build incubator-wide shared knowledge, experience methods,
systems, and platforms

Our enterprise often reflects on the past work and draws out the corresponding experience and
lessons

Network relationship interaction Our enterprise is good at identifying intermediaries who hold a lot of related resources Ritter and Gemünden (2003)
capability
Our enterprise has set up a functional department dedicated to handling external cooperation
relations

Our enterprise regularly communicates and interacts with external incubation network
organizations in various forms

Our enterprise continuously builds, deepens, and improves relationships with external incubation
network organizations based on our experience

Potential absorptive capacity Our enterprise can pay attention to and collect new technologies and knowledge emerging in the Ritter et al. (2004)
industry promptly

Our enterprise can accurately assess the value of new technologies and knowledge

Our enterprise is in constant contact with the outside world to acquire new technologies and
knowledge

Our enterprise can quickly analyze and understand the new technologies and knowledge that has
been acquired

Our enterprise can learn new technologies and knowledge acquired at a faster pace

Actual absorptive capacity Our enterprise regularly discusses market trends and new product development matters Ritter et al. (2004)

Our enterprise can effectively integrate its existing relevant knowledge and technology with the
new technology and knowledge after digestion

Our enterprise is better able to use new knowledge to develop new markets

Our enterprise can use the new knowledge to improve existing profitability models or launch new
business models

Service innovation performance New services to meet the dynamic needs of incubators Voss and Voss (2000), Monica Hu
et al. (2009)
The quality and level of new services exceeded the expectations of incubators

incubators are satisfied with the quality of new services provided by the incubator

The incubators are satisfied with the new service implementation and cooperation

Service innovation has led to a greater increase in the incubation capacity of the incubator

3.2 Method research reasonable explanation of the complex causes of the outcome
variables by dealing with the multi-factor linkage
Compared with traditional statistical methods, the qualitative relationship. Second, unlike the large sample data requirements
comparative analysis (QCA) method is more suitable for this study. of traditional statistical methods, QCA only needs small sample data
The reasons are as follows: First, different from the traditional (at least a dozen samples) to establish a causal relationship between
regression method which focuses on exploring the “net effect” of the antecedent variables and the outcome variables. Thirdly,
a variable, QCA is based on the “configuration theory” and makes a compared with the traditional regression method which can only

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TABLE 2 Reliability and validity.

Variable Item Convergent validity Cronbach’s Multicollinearity

alpha
Cross Composite AVE VIF
loadings reliability
Network resource patching ability (NRPA) NRPA1 0.931 0.942 0.843 0.907 3.377

NRPA2 0.942 3.774

NRPA3 0.881 2.473

Network cross-organization learning ability NCOLA1 0.817 0.882 0.651 0.821 1.728
(NCOLA)
NCOLA2 0.823 1.811

NCOLA3 0.795 1.691

NCOLA4 0.792 1.664

Network relationship interaction capability NRIC1 0.850 0.915 0.729 0.875 2.110
(NRIC)
NRIC2 0.794 1.693

NRIC3 0.895 3.719

NRIC4 0.872 3.268

Potential absorptive capacity (PAC) PAC1 0.848 0.926 0.717 0.900 3.719

PAC2 0.883 4.476

PAC3 0.892 3.397

PAC4 0.881 2.819

PAC5 0.718 1.556

Actual absorptive capacity (AAC) AAC1 0.837 0.904 0.702 0.858 2.162

AAC2 0.868 2.440

AAC3 0.849 2.096

AAC4 0.796 1.686

Service innovation performance (SIP) SIP1 0.879 0.950 0.792 0.934 4.269

SIP2 0.884 4.587

SIP3 0.900 3.610

SIP4 0.913 4.746

SIP5 0.873 3.625

deal with the symmetric relationship between variables, QCA allows In this paper, PLS-SEM (Hair et al., 2019) and fsQCA (Fiss,
and can deal with asymmetric causality well. 2011) are selected to conduct causal and path analysis of network
According to the variable type, QCA is divided into three capacity and absorptive capacity on service innovation
operation methods: fuzzy set (fsQCA), crisp-set qualitative performance (Schlittgen et al., 2016). This study employs
comparative analysis (csQCA) and multi-value qualitative partial least squares structural equation modeling (PLS-SEM).
comparative analysis (mvQCA). Among them, csQCA and Like most theoretical exploratory studies, the sample size of this
mvQCA are suitable for dealing with binary categorical study is relatively small, and the PLS-SEM model is suitable for
variables and multi-category variables respectively. fsQCA the empirical analysis of this paper because it applies a non-
deals with partial membership problems and degree changes parametric inference method for exploratory research
by using the membership degree between 0 and 1 to represent characteristics (Woodside, 2016), and the sample data do not
the possibility of causal conditions. The variables involved in need to satisfy the normal distribution (Ringle et al., 2012). In
this study are mostly continuous variables, and there are this paper, the PLS-SEM model was constructed using
problems of partial membership and degree changes. SmartPLS3.0 software (Rigdon, 2012). This study employs
Therefore, fsQCA is used to more fully observe the subtle fsQCA to address H9a-H9c and H10a-H10c. Seny Kan et al.
effects of changes in variable combinations under different (2016) argue that fsQCA is a novel way to access knowledge on
conditions (Ragin, 2008). organizations and management issues.

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TABLE 3 Discriminant validity—Fornell-Larcker Criterion and Heterotrait - Monotrait Ratio.

Mean S.D. 1 2 3 4 5 6
1. Actual absorptive capacity 4.72 1.11 0.838 0.811 0.352 0.486 0.607 0.716

2. Network cross-organization learning ability 4.9 1.15 0.681** 0.807 0.345 0.438 0.634 0.694

3. Network relationship interaction capability 5.43 1.05 0.307** 0.294** 0.854 0.233 0.384 0.443

4. Network resource patching ability 3.81 1.55 0.429** 0.376** 0.21** 0.918 0.417 0.567

5. Potential absorptive capacity 5.17 1.17 0.539** 0.548** 0.339** 0.387** 0.847 0.634

6. Service innovation performance 5.04 1.06 0.644** 0.611** 0.402** 0.527** 0.589** 0.89

Note: Significant level:p < 0.10; *p < 0.05; **p < 0.01; ***p < 0.001, Bold diagonal entries are square root of AVEs, Heterotrait-Montrait ratios (HTMT) (Underlined) are below 0.85.

TABLE 4 Significant testing results of the structural model path coefficients.

Path coefficient t-value p-value 95% BCa confidence interval Conclusion

AAC - > SIP 0.257 2.941 0.003 (0.084,0.425) H8 supported

NCOLA - > AAC 0.581 9.599 0.000 (0.454,0.689) H5b supported

NCOLA - > PAC 0.426 6.263 0.000 (0.298,0.561) H5a supported

NCOLA - > SIP 0.192 2.147 0.032 (0.017,0.365) H2 supported

NRIC - > AAC 0.064 1.87 0.061 (0.015,0.196) H6b not supported

NRIC - > PAC 0.174 2.649 0.008 (0.045,0.299) H6a supported

NRIC - > SIP 0.148 2.608 0.009 (0.034,0.258) H3 supported

NRPA - > AAC 0.191 3.383 0.001 (0.086,0.305) H4b supported

NRPA - > PAC 0.191 3.036 0.002 (0.068,0.314) H4a supported

NRPA - > SIP 0.235 4.026 0.000 (0.114,0.343) H1 supported

PAC - > SIP 0.204 2.927 0.003 (0.061,0.333) H7 supported

SRMR composite model = 0.067.

R2PAC = 0.366; Q2PAC = 0.252.
R2AAC = 0.507; Q2AAC = 0.347.
R2SIP = 0.586; Q2SIP = 0.453.
5000 bootstrap samples.

4 Result (see Table 3). In summary, the measurement model met the basic
requirements of reliability and validity.
4.1 Evaluation of measurement model

Using SmartPLS 3.0 for reliability analysis (see Table 2), all 4.2 Evaluation of measurement model
construct factor loadings took values ranging from 0.718 to 0.942
(Fornell and Larcker, 1981), all reaching a significance level of p < The predictive power of the model in this study was evaluated by
0.001, Cronbach’s alpha took values ranging from 0.821 to 0.934, the internal model explanatory efficacy using R2 (multiple
and composite reliability (CR) took values ranging from 0.882 to coefficients of determination), where a higher value of R2
0.950. The internal consistency and combined reliability of the indicates that the measured variables explain the latent variables
variables were high. The average variance extracted variance better. In this study, AAC explained the model to the extent of 0.507,
(AVE) of all the constructs was greater than the threshold of 0.5, PAC explained the model to the extent of 0.366, and SIP explained
indicating good convergent validity of the model; the square root of the model to the extent of 0.586 (see Table 4). In general, R2 is weak
AVE of all the variables was greater than the correlation coefficients between 0.25 and 0.5 and moderate between 0.5 and 0.75 (Afonso
of the constructs with other constructs, indicating good discriminant et al., 2018). Similarly, all VIF values are below the common cutoff
validity of the model (see Table 3). The Heterotrait-Monotrait ratio threshold of 5 (Hair et al., 2012). Similarly, results from blindfolding
was used to assess the discriminant validity, which is more sensitive with an omission distance of 7 yield Q2 values well above zero
for dealing with the validity of variance-based structural equations, (Table 4). In summary, the explanatory power of the model in this
and it was found that the ratios were all below the threshold of 0.85 study is generally in line with the requirements.

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TABLE 5 Calibration positioning points of case variables.

Variables Locating point

Full membership Crossover point Full non-membership

Outcome variables SIP 7 5 3.71

NCOLA 6.5 5 3.5

AAC 6.25 4.75 3.25

Conditional variables NRPA 6 4 1.33

PAC 7 5 3.89

NRIC 7 5.5 4

4.3 Fuzzy set qualitative comparative TABLE 6 Analysis of necessary conditions.

analysis (fsQCA) approach High-level SIP

QCA is based on set theory and holistic perspective (Fiss, 2011) Conditional variable Consistency Coverage
and is able to explain the composition of antecedents that lead or do
NCOLA 0.789263 0.810349
not lead to a certain outcome. Based on the research model, fsQCA is
used to analyze the complex antecedents of service innovation ~ NCOLA 0.616619 0.555546
performance of technology incubators by taking service AAC 0.813991 0.801877
innovation performance as the outcome variable, as follows:
firstly, the raw data are calibrated to obtain fuzzy affiliation ~ AAC 0.580062 0.542719

scores; secondly, all antecedent variables are tested for necessity NRPA 0.761614 0.749419
conditions; finally, the combination of sufficient conditions is
~ NRPA 0.565902 0.530049
determined using truth table analysis (Rihoux and Ragin, 2009).
PAC 0.851667 0.763229
4.3.1 Calibration procedure ~ PAC 0.546508 0.564550
“Calibration is the process of assigning an ensemble affiliation
score to a case” (Fiss, 2011). Ragin. (2008) defines fuzzy sets as fully NRIC 0.748524 0.719329

affiliated, intersection, and fully unaffiliated to establish the ~ NRIC 0.632815 0.606535
association of variables with fuzzy sets. It is centered on
combining multiple aspects to select 3 reasonable anchors and
explanations for the variables, typically 95% high-quantile,
median (50%), and 5% low-quantile of the sample data. necessity analysis (see Table 6). Following the recommendations from
The results and calibration information for each conditional Ragin. (2008) and Fiss. (2011), this study sets consistency and PRI
variable are listed in Table 5. consistency thresholds to 0.8 and 0.5, respectively, thus identifying the
solutions that lead to high service innovation performance.
4.3.2 Analysis of necessary conditions
The QCA method includes two types of analyses, necessity analysis 4.3.3 FsQCA solution
of conditions and group state analysis of conditions, which are The results of high service innovation performance were
performed separately and necessity analysis is performed prior to calculated by fsQCA3.0, and since the intermediate solution is
group state analysis of conditions. The necessity test identifies the more likely to reflect the actual results, the intermediate solution
extent to which a single factor or variable influences the results. The was used for the analysis (Rihoux and Ragin, 2009), resulting in
QCA method is case-oriented, and the results of the QCA path analysis four antecedent condition groupings of high service innovation
may be erroneous if a single variable plays a decisive role in the results. performance (see Table 7). the consistency values of the four high
Therefore, in the early studies of the QCA method of necessity analysis, service innovation performance groupings were 0.924, 0.925,
scholars had different views on whether the necessary conditions should 0.910, and 0.940, with an overall consistency of 0.881. This
be retained or not, and when the necessary variables are not identified indicates that the four histories are sufficient conditions for
and the group analysis is performed directly, there is a risk that the achieving high service innovation performance when the
necessary conditions will be eliminated by the minimization process. majority of cases are satisfied; the overall coverage is 0.766,
The necessity test usually requires a minimum value of 0.9 for thus explaining 76.6% of high service innovation performance.
consistency, above which the variable is considered necessary for the From the results, fsQCA effectively identifies the four histories of
outcome to occur, and its corresponding coverage is an important high service innovation performance and has strong explanatory
indicator of the empirical relevance of the necessity condition in the power, which validates the antecedent construct of high service

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TABLE 7 Configurations of high service innovation performance.

Path

Network capability orientation Absorptive capacity orientation

Conditional configuration Configuration 1 Configuration 2 Configuration 3 Configuration 4

NCOLA • • •

AAC • • •

NRPA • • •

PAC • • •

NRIC ⊗

Raw coverage 0.599223 0.600318 0.644775 0.424682

Unique coverage 0.0488294 0.0499247 0.0943816 0.0221214

Consistency 0.923954 0.925465 0.910224 0.939979

Solution coverage 0.765651

Solution consistency 0.880854

Note: The black circles (•) denote the presence of a condition, whereas the crossed-out circles (⊗) indicate the absence of one (Ragin, 2008). Core elements of a configuration are marked with
large circles (prime implicants), peripheral elements with small ones and blank spaces are an indication of a “don’t care” situation in which the causal condition may be either present or absent
(Mikalef et al., 2015).

innovation performance due to the asymmetric characteristics of network cross-organization learning ability to make up for it.
the histories. Conversely, as shown in configuration 4, if network relationship
Configuration 1 and configuration 2 are network capability interaction capability is not important, network resource
orientation configurations. Configuration 1: Network cross- patching ability should become the important factor of the
organization learning ability, network resource patching ability, network capacity to ensure the realization of high service
and actual absorptive capacity are the core conditions. innovation performance.
Configuration 2: Network cross-organization learning ability, This study concludes on the asymmetrical nature of the causal
network resource patching ability, and potential absorptive relationships leading to high service innovation performance.
capacity are the core conditions. This sort of configuration shows Overall, the fsQCA results provided in Table 7 support H9a,
that in the “network capability orientation” incubator network, the H9b, H9c, H10a, and H10b, and not support H10c. The results
two dimensions of incubators’ network competence are the key to of fsQCA once again support the results in PLS-SEM.
achieving high service innovation performance. That is, if the
network capability of the incubator network is based on network
cross-organization learning ability and network resource patching 4.4 Robustness test
ability as the main index, then the incubators should also pay
attention to the cultivation of the network capability in terms of We used standard methods to conduct a robust analysis of
learning, coordination, and resources. This highlights the truth that QCA results. The commonly used methods are: Adjust the
“It takes a good blacksmith to make good steel." calibration threshold, change the consistency threshold, add or
Regarding core conditions, configuration 3 and configuration delete the shell, change the frequency threshold, and add other
4 embody the feature of “high absorption”. They indicate that conditions. Method 1: Referring to the practice of Fiss, the
when potential absorptive capacity and actual absorptive capacity robustness test is carried out by adjusting the crossing point
play a prominent role in the incubator network, the incubators’ of calibration. Specifically, the crossing point is adjusted from
network-network resource patching ability and network cross- 0.5 to 0.55. The number of configurations and the neutral
organization learning ability are the key to achieving high service permutations with the same core conditions but different edge
innovation performance. It further shows that when incubators conditions all changed slightly, but the changes were not enough
value “absorptive capacity”, orchestrating resources (network to support meaningful and completely different substantive
resource patching ability) and maintaining cooperative interpretation method 2. Referring to the set relation and
relations (network cross-organization learning ability) are the quasi-sum difference of configurations proposed by Schneider
necessary competencies for incubators to achieve high service and Wagemann. (2012) as the judging criteria, this paper reduced
innovation performance. Specifically, configuration 3 shows that the consistency threshold from 0.8 to 0.75 and found that the
if potential absorptive capacity and actual absorptive capacity are research configurations were still supported. Therefore, the
important network capacity elements, incubators need strong research conclusions of this paper are still robust.

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5 Discussion Firstly, Technology incubators should strengthen resource

acquisition and accumulation, and numerous studies have
5.1 Theoretical contribution shown that incubator service innovation in China lacks the
necessary capital, technology and talent. This study shows that
The important theoretical contribution of this work is twofold. incubator service innovation relies more on external resources,
Firstly, Network capacity has a significant positive impact on and with the construction of a large science and technology
absorptive capacity under the framework of “resource, capacity and country to a strong science and technology country, network
relationship”, and absorptive capacity as a mediating variable has a capacity and absorptive capacity are bound to become the source
significant positive impact on the service innovation performance of of competitive advantage for enterprises. First, incubators should
technology business incubators. In the service innovation process of focus on internal resource accumulation, strengthen the
technology business incubators, the absorption and application of investment in the elements needed for service innovation, and
knowledge by subjects build cross-organizational network strive to build core capabilities for service innovation. Second,
cooperation based on trust (Nicotra et al., 2014; Ratten, 2016; external resources should be actively incorporated into the
Proeger, 2020). Only technology business incubators can fully incubator service innovation network, and exchanges and
utilize their own multi-dimensional and multi-module network learning with external incubators should be strengthened
capabilities to plan, coordinate and operate inter-organizational through building third-party platforms and supply chain
network relationships, thus facilitating incubators to fully develop collaboration to enhance the incubator’s service innovation
their matching absorption capabilities (Dell’Anno and del Giudice, capabilities; finally, incubators should choose a service
2015; Franco et al., 2018; Kastelli et al., 2022). In turn, it can meet the innovation enhancement path suitable for their own
real needs of incubators, improve incubation capacity and gain characteristics based on their own resource endowments.
sustainable competitive advantages. First, the key to achieving Secondly, incubators should pay attention to and enhance
innovation in technology business incubator services is to fully absorptive capacity. incubators should not only pay attention
draw on and utilize the various value-based resources in the to and enhance the potential absorptive capacity to strengthen
innovation incubation network relationships. The ability of the acquisition and digestion of knowledge, but also pay attention
technology business incubators to use network resources can help to and enhance the actual absorptive capacity to strengthen the
promote the aggregation and sharing of external horizontal and conversion and application of knowledge, thus enhancing service
vertical innovation resources, enhance the effect of heterogeneous innovation performance.
resource flow and transfer, and achieve efficient resource allocation
and high-speed knowledge flow in the context of open innovation
networks; second, the realization of knowledge accumulation in 6 Conclusion
technology business incubators is based on the organizational
learning ability of innovation incubation networks. Network This study constructs a theoretical framework and hypotheses of
organizational learning ability is an important method and path the impact of network capability within the “resource-capability-
for technology business incubators to acquire value-based relationship” perspective, absorptive capacity on service innovation
knowledge from external innovation networks, which can performance of technology business incubators. This study uses
effectively prompt incubators to draw and store knowledge. At 234 Chinese incubators in the incubator network as samples and
the same time, through knowledge integration, new knowledge applies partial least squares structural equation modeling (PLS-
and technologies are internalized into its own knowledge SEM) and fuzzy-set qualitative comparative analysis (fsQCA) to
capabilities to provide quality incubation services for incubators explore the questions mentioned above. The following conclusions
and then realize service innovation; thirdly, technology business are drawn:
incubators make full use of network relationship interaction Firstly, according to the empirical results, it can be seen that
capabilities to maximize the integration and configuration of 12 hypotheses in the conceptual model of this study passed the
innovation incubation network relationships through statistical test and 2 hypotheses did not pass the statistical test. The
comprehensive, multi-dimensional and multi-level in-depth results show that the conceptual model proposed in this paper is
interaction and communication, and are committed to building better validated.
value co-creation. The “relationship rent” innovation network, with Secondly, in the service innovation process of technology
close cooperation and interdependence among them, lays the business incubators, network capability (network resource
foundation for the technology business incubator to be in the patching ability and network cross-organization learning ability)
active “knowledge field”, and then realize knowledge has a significant positive impact on the service innovation
accumulation and achieve the service innovation goal. performance of technology business incubators through the
mediating role of absorptive capacity, and network relationship
interaction capability has a positive impact on the service
5.2 Management implications innovation performance through potential absorptive capacity.
Thirdly, the findings of this paper have important theoretical
This paper shows that the network capacity and absorptive significance and practical value for the construction and
capacity of incubators play an important role in the process of management of innovation incubation network and efficient
service innovation performance improvement. Therefore, the allocation of innovation resources, and the improvement of
following 2 insights can be drawn. service innovation performance of technology business

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Dong et al. 10.3389/fenvs.2023.1154162

incubators. It provides policy suggestions and practice paths for Author contributions
incubator managers and decision makers.
Methodology and software, HD and RM; formal analysis, HD
and JL; resources and data curation, HD; investigation, HD; writing-
7 Limitations and future research original draft preparation, HD; writing-review and editing, HD and
RM; supervision and project administration, JL; All authors have
There are still some shortcomings and areas for improvement in read and agreed to the published version of the manuscript.
this paper. Firstly, the research sample of this paper is mainly
selected from strategic emerging industries, and the single
industry makes the scope of application of this paper needs to be Funding
further discussed and verified, and future research can try to expand
the scope of industry research. Second, this paper only uses cross- This research was funded by Research project of Land
sectional data in the empirical study, which may be biased, and Engineering Construction Group (DJNY-YB-2023-37) and
future studies can try to use longitudinal comparative data. Finally, Construction of Shaanxi soil mass quality detection and
there may be collaborative effects of network capacity and absorptive evaluation sharing platform (2021PT-053).
capacity on the innovation performance of incubator services, which
are considered but not in depth in the fsQCA approach, and their
substitution or synergistic effects can be further studied in the future. Conflict of interest
Authors HD, RM, and JL are employed by Shaanxi Provincial
Data availability statement Land Engineering Construction Group Co., Ltd.
The remaining authors declare that the research was conducted
The original contributions presented in the study are included in in the absence of any commercial or financial relationships that
the article/supplementary material, further inquiries can be directed could be construed as a potential conflict of interest.
to the corresponding author.

Publisher’s note
Ethics statement
All claims expressed in this article are solely those of the authors
Ethical review and approval was not required for the study on human and do not necessarily represent those of their affiliated
participants in accordance with the local legislation and institutional organizations, or those of the publisher, the editors and the
requirements. Written informed consent from the participants was not reviewers. Any product that may be evaluated in this article, or
required to participate in this study in accordance with the national claim that may be made by its manufacturer, is not guaranteed or
legislation and the institutional requirements. endorsed by the publisher.

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