Two-Tier Network Embeddedness, Heterogeneous Resource Acquisition, and Firms’ Breakthrough Innovation: The Moderating Effect of Digitalization

Promoting breakthrough innovation is a critical strategy for overcoming technological bottlenecks and addressing “chokepoint” challenges, especially for emerging economies. This paper constructs a two-tier innovation network comprising collaborative R&D and technology transaction subnetworks. Using panel data from Chinese A-share listed companies between 2008 and 2022, we empirically examine the impact of network embeddedness on firm breakthrough innovation in the artificial intelligence industry and explore the moderating effect of enterprise digitalization. The results reveal a U-shaped relationship between embeddedness breadth and breakthrough innovation, and an inverted U-shaped relationship between embeddedness depth and breakthrough innovation. The heterogeneous resource acquisition mediates these nonlinear relationships. As a firm’s digitalization intensity increases, the U-shaped and inverted U-shaped relationships between embeddedness dimensions and breakthrough innovation are significantly amplified. This study deepens our understanding of the mechanisms and boundary conditions by which network embeddedness affects firm innovation and provides new theoretical insights for fostering breakthrough innovation in emerging economies.