Exploring the impact of external collaboration on firm growth capability: the mediating roles of R&D efforts

In today’s business environment with high market turbulence, rapid technological change, and fierce competition, external collaboration and internal efforts in research and development (R&D) become equally important for firm growth. However, little is known about the effects of external collaboration on firm growth that generates along the path from outside to inside. Therefore, this study aims to explore the indirect effects of different types of external collaboration on firm growth capability via R&D efforts. It empirically analyzed a sample of 94 Chinese top-ranking innovative enterprises by applying hierarchical regression and mediation analysis. The results indicate that vertical collaboration, horizontal collaboration, and competitor collaboration are positively and directly related to the firm’s R&D intensity, R&D human capital, and firm growth capability. Furthermore, the firm’s R&D intensity and R&D human capital are positively and directly related to growth capability. The results of mediation analyses showed that R&D intensity mediated the relationship between external collaboration and firm growth capability. However, the results failed to support the mediating role of R&D human capital in the relationship between external collaboration and firm growth capability. This study enriches the literature on open innovation and organizational growth, and provides valuable insights for firm managers and policymakers.