Bridging the gaps or fecklessness? A moderated mediating examination of intermediaries' effects on corporate innovation. (June 2020)

• Record Type: Journal Article
• Authors: Lin, Han; Zeng, Saixing; Liu, Haijian; Li, Chao
• Is Part Of: Technovation. Volume 94/95(2020)
• Publication Date: 2020-06
• Subjects: Innovation -- Intermediary -- Dynamic capability -- Strategic conformity -- Structure formalization; Technological innovations -- Periodicals; Industrial management -- Periodicals; Innovations -- Périodiques; Gestion d'entreprise -- Périodiques; Electronic journals; 658.57
• DOI: 10.1016/j.technovation.2018.02.006
• Languages: English
• ISSNs: 0166-4972

Abstract

Abstract: Intermediaries are frequently used as external institutions to bridge knowledge gaps and enlarge innovation search. Although there is a consensus that ties with intermediaries have a significantly positive impact on firms' innovation performance since external knowledge sources are important to firms' innovative activities, far less is known about how these intermediaries become effective drivers of corporate innovation. From the capacity-based view, this study proposes that intermediaries facilitate the development of dynamic capability which further causes remarkable innovation. A firm's dynamic capability acts as a mediator in the relationship between intermediaries and innovation performance. It is also observed that organizational structure formalization and strategic conformity negatively moderate the mediation effect. This proposed theoretical framework is proven by empirical results from a moderated mediation analysis using a sample of Chinese manufacturing firms. Highlights: In detail, from the capacity-based view, this study theoretically proposes and empirically demonstrates that intermediaries facilitate the development of dynamic capability which further causes remarkable innovation. A firm's dynamic capability acts as mediator in the relationship between intermediaries and innovation performance. It is also observed that organizational structure formalization and strategic conformity negatively moderate the mediation effect. We strongly believe that the manuscript has a strong potential to extend our understanding of the influence of intermediaries on corporate innovation in developing countries and also fuels the ongoing debate on innovation management as a complementary approach and offer significant opportunities for future research on this important topic.