Commercial partnerships and collaborative innovation in China: the moderating effect of technological uncertainty and dynamic capabilities

The purpose of this study is to empirically investigate the extent to which two types of commercial partnerships (business partner and non-business partner) affect the collaborative innovation of firms in emerging economies. Specifically, the roles of two commercial partnerships are investigated. Additionally, the study explores the moderating effect of external technological uncertainty and internal dynamic capabilities on the relationship between two commercial partnerships and on collaborative innovation.

Using a sample of 370 high-tech firms in China, the authors applied the partial least squares structural equation modeling approach to model these relationships.

The findings reveal opportunities and challenges for companies according to two intensities of commercial partnership for collaborative innovation. The partnership contribution to innovation and competiveness is different within the two routes and ranges. The findings indicate that (1) intense commercial relationships with business partners have a stronger positive significant impact on collaborative innovation than those with non-business partners and (2) non-business partners have a weaker positive impact on collaborative innovation at high external technological uncertainty. It was also found that (3) the positive impact of business partners on collaborative innovation is weakened when a firm has high dynamic capabilities, whereas the positive impact of non-business partners is strengthened.

Insight into the roles of two commercial partnerships in achieving collaborative innovation facilitates the advancement of the theoretical understanding of the circumstances under which cooperative innovation can be more effective under different partnerships.

A key strategic question is whether comprehensiveness enables firms to make better strategic decisions in various environments. In the process of innovation, companies must choose different types and quantities of partners, and they must regulate their partners’ innovative behavior by establishing a corresponding network structure and relationship rules. The current study focuses on analysis of how different intensities of commercial partnerships affect collaborative innovation. This research provides a theoretical framework that creates a new classification of commercial relations with regard to collaborative innovation, and it highlights the difference between the two types of partnerships. This study finds that there are many problems in the selection of innovative partners in China’s high-tech companies. Therefore, companies should strengthen their understanding of cooperative innovation, and they should build and manage highly efficient innovation networks. This study helps companies, high-tech industry associations, academia and government to take enhanced, informed actions.