Bridging Technological Competence and Innovation Performance: The Mediating Role of Collaborative Innovation in Chinese Manufacturing SMEs

HRMARS - Purpose: This study investigates the interplay between technological competence, collaborative innovation, and innovation performance within the context of Chinese manufacturing Small and Medium-sized Enterprises (SMEs). Utilizing a theoretical framework that integrates the Resource-Based View and Dynamic Capabilities perspective, the research posits that technological competence is a critical antecedent to collaborative innovation, which in turn enhances innovation performance. Design/methodology/approach: Data was collected from 163 SMEs representatives in China. PLS-SEM analysis was conducted to verify the proposed hypotheses. Findings: The current study demonstrated that technological competence significantly influences collaborative innovation, which subsequently drives innovation performance. Furthermore, collaborative innovation is identified as a vital mediating mechanism that amplifies the impact of technological competence on innovation outcomes. Research limitations/implications: The findings underscore the importance of fostering technological capabilities and collaborative networks to navigate the challenges of a volatile market environment, providing actionable insights for SMEs aiming to enhance their innovation capabilities through strategic partnerships. Originality/value: This research contributes to the understanding of how internal resources can be leveraged through external collaborations to achieve superior innovation performance in the manufacturing sector.