The capability that facilitates the transition of emerging market firms (EMFs) from technology followers to innovation leaders is an important but underexamined topic, particularly for firms aiming to compete distinctively in high-technology fields. Drawing on the recombinant perspective, in this article, we investigate how an EMFs’ recombinant capability relates to its innovation and how R&D collaboration moderates this relationship. Using panel data on 184 publicly listed firms in the Chinese telecommunication-equipment industry from 2009 to 2014, we find that both recombinant reuse and recombinant creation positively relate to firm innovation performance. Moreover, the positive association between recombinant reuse and innovation is strengthened by the high degree of R&D collaboration. These findings provide novel insights into how firms may overcome their latecomer disadvantages and leverage the accumulated knowledge stock to foster innovation in an emerging economy.

How do incumbent firms choose appropriate response strategies in the face of disruptive shocks from new entrants? Based on the problem-solving perspective, we conducted a multiple-case study of thr...