Impact of partner heterogeneity on innovation performance through interaction behaviour in Chinese complex product R&D industries

This paper examines the effect of partner heterogeneity, in terms of knowledge, resource, cognitive, and ecological, on innovation performance with the mediation role of interaction behaviour through interactive innovation lens. The analysis of 206 survey questionnaires reflects that knowledge and resource heterogeneities significantly and positively affect interaction behaviour and innovation performance. Ecological heterogeneity has an inverted U-shaped effect on interaction behaviour and innovation performance. Cognitive heterogeneity has an inverted U-shaped effect on innovation performance but is insignificant to interaction behaviour. Interaction behaviour is significantly related to innovation performance as well as mediates the effects of partner heterogeneity except for cognitive heterogeneity. The presence of circular causality and self-reinforcing mechanisms between partner heterogeneity and innovation performance were first confirmed in our study. The study contributes to the theory of interactive innovation, partner heterogeneity, and innovation management literature. To practitioners in Chinese complex product R&D industry, this study advises to interact with the industry players at multiple levels, however, the gap with respect to cognition and geography must not be too high.