How do firms use virtual brand communities to improve innovation performance? Based on consumer participation and organizational learning perspectives

Purpose In the context of virtual brand communities (VBCs), based on self-determination theory and organizational binary learning (OBL) theory, this study investigates the direct and indirect effects of various dimensions of consumer participation (CP) on firm innovation performance (FIP) and the mediating role of OBL. By introducing the perspective of knowledge absorptive capacity (KAC), this study examines the moderating effect of KAC on the relationship between OBL and TIP. Design/methodology/approach In this study, 751 samples are collected from Chinese firms, and stratified adjusted regression analysis is used to conduct empirical tests. Findings Information provision or co-creation directly affects FIP; the latter is more significant than the former, while social interaction does not directly affect FIP. Exploitative or exploratory learning plays a mediating role in the relationship between information provision or co-creation and FIP. In contrast, exploratory learning plays a mediating role in the relationship between social interaction and FIP. KAC has a positive moderating effect on the relationship between exploitative learning or exploratory learning and FIP. When the firm has a low KAC, the improvement of FIP through exploratory learning is slight. Originality/value In VBCs, this study tries to divide the dimensions of CP. It also clarifies the mediating effect of OBL on CP and FIP. In addition, it explores the moderating effect of KAC on OBL and FIP. The conclusions of this study provide theoretical support and practical inspiration for firms to use VBCs to improve FIP.