Abstract: Network Embeddedness becomes a popular paradigm for innovation. But the mechanism between double heterogeneous networks embeddedness and enterprise innovation performance remains vague. From absorptive capacity perspective, a theoretical model of heterogeneous networks embeddedness and enterprise innovation performance is put forward on the base of deconstruction of absorptive capacity, taking hi-tech firms in Dong Hu Hi-tech Zone as study objects, using the questionnaire method and structural equation model method to analyze the relationship between double heterogeneous network embeddedness and innovation performance for opening the black box of enterprise innovation activities. Results show that: (1) double network embeddedness enhance enterprise innovation performance through different mechanisms; (2) absorptive capacity is a comprehensive capacity made from four sub-capabilities according to the reticular formation. Finally, some suggestions on how to enhance enterprise innovation performance is put forward.

Key words: innovation performance, absorptive capacity, double network embeddedness, value chains, knowledge chains