Boundary-spanning Search, Capability Reconfiguration and Firm Innovation Performance

The purpose of this study is to investigate the relationship between boundary-spanning search and firm innovation performance. Capability evolution and capability substitute are adopted as mediators between boundary-spanning search and firm innovation performance. With a sample of 266 Innovative enterprises in China, structural equation model analysis shows that boundary-spanning search are positively association with firm innovation performance, capability evolution and capability substitute; capability evolution and capability substitute are positively association with firm innovation performance. The research also shows that capability substitute has a greater contribution to innovation performance than capability evolution does, so managers should pay more attention to the knowledge absorption and integration, and the competence upgrading anti updating, rather than focus on the simple introduction of technology. It is necessary to a firm continuously search for new competence bases and reconfigure their existing portfolio of competences when facing with a changing environment.