Linking technological relatedness to firm innovation: the moderating roles of environmental dynamism, competitiveness and enterprise life cycle

Purpose Grounded in inter-firm collaboration contexts, this study examines the influence of technological relatedness – encompassing technological similarity and complementarity – on the innovation performance of manufacturing enterprises in emerging economies, with a focus on how environmental dynamism, competitiveness and firm life cycle stages moderate these relationships. Design/methodology/approach The authors empirically tested the hypotheses based on the data of Chinese listed manufacturing companies from 2006 to 2021. Findings Both technological similarity and complementarity positively impact innovation performance. Environmental dynamism enhances the positive effects of technological similarity, while environmental competitiveness amplifies the advantages of technological complementarity. The innovation benefits brought by technological relatedness differ across life cycle stages, with technological similarity preferred at the introduction phase and complementarity preferred at the growth and mature stages. Originality/value This study enriches the research on the driving factors of innovation performance from the perspective of technological relatedness. The authors extend the boundaries of technological relatedness research by systematically examining the moderating roles of environmental dynamism, competitiveness and the enterprise life cycle. The findings provide valuable insights for managers in manufacturing enterprises on how to formulate effective partner selection strategies that align with external environmental changes and the stages of enterprise development.