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Purpose

Existing research on collaborative innovation mechanisms from the perspective of global operation is very limited. This paper aims to address the research gap by studying the factors influencing globally distributed teams’ innovation performance, especially how effective knowledge sharing between distributed teams promotes collaborative team innovation.

Design/methodology/approach

This research proposes a model to investigate how collaborative knowledge sharing affects global operations [team dispersion, task orientation, information and communication technology (ICT) usage] and innovation performance based on the data collected from 167 managers in 40 local Chinese IT and offshoring firms. Using the theory of Cognitive Diversity and Innovation Diffusion and Synergy, separate hierarchical regression analysis was used to test the proposed model.

Findings

The findings of this study demonstrate that effective collaborative knowledge sharing plays a crucial role in enhancing innovation performance in a global operation. Specifically, innovation capacity can be improved by task orientation, ICT usage and team dispersion.

Originality/value

This research study contributes to the development of global distributed operations and innovation among distributed teams in multinational corporations.

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