Sustainable Product Innovation Through Horizontal Coopetition: The Role of Boundary‐Spanning Search and Partner Similarity

ABSTRACT This study is the first to examine the mediating role of boundary‐spanning search and the moderating role of partner similarity in horizontal coopetition for sustainable product innovation. Analyzing empirical data from 236 Chinese firms, we found that horizontal coopetition positively impacts both proactive search (aimed at surpassing competitors) and responsive search (aimed at following competitors), with a stronger influence on proactive search. Both search types mediate the relationship between horizontal coopetition and sustainable product innovation. Furthermore, greater competing similarity (e.g., market coverage) between firms and their partners increases firms' inclination toward proactive search under the influence of horizontal coopetition but weakens their tendency for responsive search. Conversely, greater cooperating similarity (e.g., corporate culture) increases firms' inclination toward responsive search under the influence of horizontal coopetition but weakens their tendency for proactive search.