How Does Knowledge Coupling Affect Firm’s Incremental Innovation? The Moderating Effects of Government Support Policies

Abstract

Acquiring and combining different knowledge elements across organizational boundaries has become an important strategy for firms’ innovation outcomes. Based on the theory of resource orchestration, this paper divides knowledge coupling into two dimensions: complementary knowledge coupling and substitutable knowledge coupling. Then, this study aims to explore the different impacts of knowledge coupling types on firm’s incremental innovation and verify the moderating role of government support policies in this relationship. Based on the survey of 279 high-tech enterprises from China, our analysis results indicate the following. (1) Complementary knowledge coupling has an inverted U-shaped impact on firm’s incremental innovation, while substitutable knowledge coupling has a positive influence on incremental innovation. (2) The fitness between government support policies and knowledge coupling types can promote the result of firm’s incremental innovation: when firms adopt complementary knowledge coupling strategies, finance and taxation support policies are more conducive to firm’s incremental innovation; when enterprises use substitutable knowledge coupling strategies, innovative environment support policies are better for the promotion of firm’s incremental innovation. The research results provide a theoretical basis for firms to select appropriate government support strategies to exert the effects of innovation based on characteristics of internal and external knowledge resources.