Social Network Construction and Competitiveness in Global Value Chain Network Analysis Perspective on Chinese Aerospace Industry

To interpret the practical implication of regression outcomes, following conclusions can be derived from our empirical evidence:

1. In China, aerospace industry is strongly demand-driven, final customers occupy the most central positions in supply chain and exert their influence back to the OEMs and suppliers.

2. In primary manufacturing sector, a few amount of OEM dominate the control and coordination power in partnership network and supply chain. Comparatively, downstream supplier take a less advantageous position in both networks, but in general they are better off than upstream suppliers which spread over the peripheral space in the supply chain.

3. Firm specialized in support activities have a strong mitigation effect in the supply chain network between OEMs and multiple-tier suppliers, but their impact in partnership network is not significant.

4. For foreign firms, country-of-origin effect do have a significant impact. Firms from developed economies have a stronger position in supply chain network, because of their innovation capacity and knowledge spill-over. But in partnership network, firms form other emerging economies have a significantly better off position due to the political intervention. They benefit inter-governmental reciprocal protocol assuring effective connection with the most competent domestic partners.

5. For domestic firms, location in provinces that have intensive output in aviation products significantly contribute to the position in both partnership and supply chain networks.

6. Coreness of business sector in the networks, year of market presence and headquarter identity have a significant positive effect on individual firms in partnership network, while embeddedness in both horizontal partnership and vertical supply chain network contributes to firm’s position in supply chain network.

7. Cognitive attributes such as similar legal system do not have a significant impact on the position in partnership network and supply chain.

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