Sustaining Innovation in Changing Context: Impact of Dynamic Network Capability and Mediation of Dynamic Positioning and Resource Orchestration

In recent years, the number of R&D partners in complex products (Cops) innovation has grown, thanks to the extensive knowledge and skills they offer. However, the current environment is becoming increasingly volatile, adversely affecting the innovation performance of Cops firms. Innovation is the primary source of survival and growth for firms; therefore, this paper aims to establish and empirically analyze a conceptual model for maintaining the innovation performance of Cops firms in a changing environment. Combining dynamic capabilities theory with the resource-based view, this study employs Smart-PLS 4 to test Cops firms. Results based on a sample of 270 Cops firms from China indicate that dynamic network capability (DNC) has a positive impact on innovation performance, with dynamic positioning characterized by increased centrality and resource orchestration playing dual and chain mediation roles between DNC and innovation performance. This paper contributes to the literature on dynamic capabilities, network dynamics, resource mechanisms, and innovation. For practitioners, this paper suggests developing DNC to sustain innovation in turbulent and changing environments.