Inter-organizational sensemaking under technological turbulence: the roles of contractualization and negotiation in inter-firm knowledge creation

Purpose Based on the sensemaking perspective, this study aims to explore how technological turbulence affects inter-firm knowledge creation through contractualization and negotiation, and examine the moderating role of legal system completeness and market information transparency. Design/methodology/approach Using a sample of 227 Chinese manufacturing firms, the hypotheses were tested using regression and bootstrap analysis. Findings The empirical results show that contractualization and negotiation significantly mediate the relationship between technological turbulence and inter-firm knowledge creation. Moreover, the positive effects of contractualization and negotiation on inter-firm knowledge creation are significantly moderated by legal system completeness and market information transparency, respectively. Originality/value This study reveals the key role of sensemaking in the impact of technological turbulence on inter-firm knowledge creation and clarifies how China’s institutional environment shapes this process, expanding the understanding of the impact of environmental turbulence on sensemaking and value co-creation.