How knowledge sharing and protection in strategic alliances affects technological innovation in high-tech manufacturing firms

Purpose This study aims to examine how the (im)balance between knowledge sharing (KS) and knowledge protection (KP) affects technological innovation (TI) in high-tech manufacturing firms from the interorganizational learning perspective, mediated by knowledge assimilation application (KAA) and knowledge transformation application (KTA). We further compare the differences in mediating effects of knowledge application activities in horizontal and vertical alliances. Design/methodology/approach Based upon survey data from 216 Chinese firms in the new energy vehicle industry, we employ polynomial regression with response surface analysis to test hypotheses. Findings The results show that when both KS and KP are at high levels, the level of TI will be higher, and when their imbalance increases in either direction, the level of TI will be lower. In addition, KAA and KTA partially mediate the relationship between the (im)balance of KS–KP and TI. We further find that the mediating effect of KAA is greater when firms are involved in horizontal alliances, while the mediating effect of KTA is greater when firms are involved in vertical alliances. Originality/value Our study provides nuanced insights into how high-tech manufacturing firms can achieve TI in strategic alliances drawing on interorganizational learning perspective. We present a preliminary theoretical rationale to guide high-tech manufacturing firms in adopting effective knowledge application activities that exploit external knowledge from horizontal and vertical alliance partners to enhance TI.