This paper aims to assess how international knowledge sourcing (IKS) is pivotal for latecomer firms to overcome capability gaps and accelerate technological catch-up (TCP). However, the existing literature offers limited insight into the intrinsic mechanisms governing this process, particularly how the heterogeneous effects of different sourcing strategies are channeled through specific internal innovation mechanisms, within the unique strategic context of latecomer catch-up. Hence, this paper aims to unpack this black box by linking IKS strategies to distinct internal innovation activities.
Using a panel data set of 553 listed Chinese information and communication technology firms from 2009 to 2020, this study examines the influence of IKS strategies – geographic knowledge sourcing (GKS) and technological knowledge sourcing (TKS) – on TCP. The analysis further investigates the mediating roles of exploitative innovation (EOI) and exploratory innovation (EOR) in the aforementioned relationship.
The results reveal that GKS exhibits an inverted U-shaped relationship with TCP, whereas TKS is positively associated with TCP. Furthermore, both EOI and EOR act as dual mediators for these relationships. Specifically, EOI and EOR jointly channel the curvilinear effect of GKS on TCP as well as the positive impact of TKS on the catch-up process.
This study contributes to a nuanced understanding of how different types of IKS affect TCP through specific innovation mechanisms. It provides practical implications for emerging market policy-making and strategic guidance for latecomer firms on effectively leveraging international knowledge.
