Knowledge search and firm innovation: the roles of knowledge inertia and knowledge integration capability

ABSTRACT Based on the knowledge-based view (KBV), we investigate how and under what conditions knowledge search, including problemistic and slack searches, affects radical and incremental innovation. Using a data set composed of 247 Chinese firms, this study finds that slack search promotes radical and incremental innovation directly while problemistic search can positively affect radical and incremental innovation by the mediating role of knowledge integration capability (KIC). In addition, learning inertia strengthens the positive effect of problemistic search on KIC. This paper primarily contributes to innovation literature by clarifying and verifying how problemistic and slack searches affect radical and incremental innovation from the combined perspective of knowledge inertia and KIC. It also creates a foundation for further empirical investigation by explaining why existing studies have different views on the impacts of knowledge search on firm innovation.