Co-innovation behavior and sustainable innovation in competitive environments

Abstract

Despite substantial efforts in examining the drivers of sustainable innovation, we still do not know enough about the impact of co-innovation behavior. In this study, we investigated the effect of co-innovation behavior on sustainable innovation and the combinative effect of absorptive capacity and competitive intensity on this relationship. Data collected from 312 firms revealed that a firm's level of co-innovation behaviors is positively associated with sustainable innovation. Moreover, we find that the effect of co-innovation behaviors on sustainable innovation is amplified when absorptive capacity is high. Finally, the moderating effect of absorptive capacity is exacerbated by competitive intensity. These findings contribute to the co-innovation and sustainable innovation literature. The theoretical and practical implications are discussed.