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Impact of partners' geographic distance and technological similarity on firms' digital innovation performance: Evidence from the Chinese automobile industry

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  • Yang, Siqi
  • Lin, Yan
  • lv, Shiwen
  • Wang, Shutian

Abstract

Digital technology is fundamentally reshaping innovation processes and partner selection dynamics. We examine how collaborative geographic distance and technological similarity influence firms' innovation performance within the digital innovation context. We also investigate the moderating roles of firms' recombinative potential and partner network position. Analyzing a sample of Chinese automobile firms, we reveal an inverted U-shaped relationship between geographic distance and innovation performance, whereas technological similarity exerts a positive linear effect with temporal heterogeneity. Furthermore, recombinative potential positively (negatively) moderates the distance-performance (similarity-performance) relationship. Conversely, partner network position negatively (positively) moderates the distance-performance (similarity-performance) effect. This study contributes by empirically establishing partner selection's distinct impacts (geography and technology) within the digital innovation context, revealing geographic distance's non-linear effect. It advances knowledge recombination and innovation network theories by uncovering the dual (positive/negative) moderating influence of recombinative potential and partner network position. For automotive industry practitioners, the findings provide clarity on digital innovation partner selection strategies.

Suggested Citation

  • Yang, Siqi & Lin, Yan & lv, Shiwen & Wang, Shutian, 2026. "Impact of partners' geographic distance and technological similarity on firms' digital innovation performance: Evidence from the Chinese automobile industry," Technology in Society, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:teinso:v:84:y:2026:i:c:s0160791x25002660
    DOI: 10.1016/j.techsoc.2025.103076
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    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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