Temporal dynamics of knowledge recombination: the role of divergence and convergence in pharmaceutical innovation

Purpose By integrating knowledge recombination theory, this study aims to examine how firms resolve temporal tensions in new product development (NPD) through recombinant divergence/convergence (RD/RC), moderated by knowledge base dynamics (breadth/depth). Design/methodology/approach Hypotheses are tested using an unbalanced panel data set comprising 373 Chinese pharmaceutical firms over 21 years (1996–2016) via negative binomial regressions. Findings RD impedes short-term NPD but fuels long-term growth, while RC exhibits inverse effects. Their interaction shifts from short-term substitution to long-term complementarity. Knowledge breadth (KB) transforms RD from a short-term liability to an asset while amplifying RC’s long-term constraints. Knowledge depth (KD) only attenuates RC’s short-term benefits and long-term drawbacks. Practical implications Managers should calibrate recombination strategies to temporal goals, deploying RC for immediate optimization, then transition toward RD for sustainable innovation. Crucially, align knowledge architecture with strategic intent—broad knowledge-based firms should accelerate RD through cross-domain integration, while depth-rich organizations maximize RC via knowledge repurposing. Originality/value Pioneering a temporal lens, this research reconceptualizes knowledge recombination as a dynamic process where RC improves short-term efficiency gains but compromises long-term resilience, while RD demands tolerance for initial inefficiencies. And their interaction effects present negative in short-term and positive in long-term, challenging universal positivity assumptions. It advances ambidexterity theory by revealing these time-dependent trade-offs, advocating strategic oscillation over static balance. Crucially, KB and KD exert distinct temporal contingencies, rejecting one-size-fits-all NPD approaches.