Contextual Effects of Technological Distance on Innovation in International R&D Networks: The Mediating Role of Technological Diversification

Amid intensified global technological competition and increasing restrictions on cross-border knowledge transfer, enhancing the ability to identify, integrate, and recombine diverse technological knowledge has become a critical strategy for strengthening the innovation capabilities of multinational enterprises (MNEs). Based on multidimensional proximity theory and dynamic capability theory, this study takes R&D units within Huawei’s global R&D network as the research object. It constructs a cross-border collaboration framework under the dual boundaries of organization-geography to explore the differences in the role of technological distance on the innovation performance of R&D units in different cooperation scenarios. This study also introduces technological diversification as a mediating variable to reveal the conversion path from heterogeneous knowledge input to innovation output. The findings indicate: (1) A nonlinear relationship exists between technological distance and innovation performance. In local-internal and international-internal collaborations, this relationship follows an inverted U-shaped pattern, whereas in local-external collaborations, it shows a significant positive effect. (2) In international-external collaboration, due to the dual absence of geographical and organizational proximity, the positive effect of technological distance on innovation performance is not significant. (3) The technological diversification capability of R&D units is a crucial mediating factor in the process by which technological distance affects innovation performance, thereby fostering the efficiency of heterogeneous knowledge absorption and recombination. The study examines the micro-mechanisms underlying cross-border collaborations and capability building in MNEs’ R&D units from dual perspectives of contextual fit and capability development, providing theoretical support and practical guidance for MNEs to optimize international technological collaboration mechanisms and improve innovation performance.