How do intermediaries drive corporate innovation? A moderated mediating examination

Although intermediaries frequently bridge knowledge gaps and enhance innovation searches as important sources of external knowledge, the mechanisms regarding how and when intermediaries become effective drivers of corporate innovation still remain indistinct. Using a sample of Chinese manufacturing firms, this study proposes and empirically tests a theoretical framework for understanding the effects of intermediaries on corporate innovation performance. The results of a moderated mediation analysis show that firms' ties to intermediaries can contribute to innovation by enhancing the scope of external innovation searches and reducing search costs. Absorptive capacity acts as a mediator in the relationship between intermediaries and innovation performance. Environmental munificence and complexity negatively moderate this mediation effect.