Sales and product innovation: the mediating role of distributor collaboration in the organizational environment

Purpose The study aims to examine how the organizational environment is associated with distributor collaboration and how this collaboration relates to both sales and product innovation. It also investigates whether distributor collaboration mediates the relationship between the organizational environment and sales and product innovation. Design/methodology/approach Data were collected through a survey of 355 managers from 16 industries across nine European countries.The data were analyzed using partial least squares structural equation modeling with SmartPLS 4. Dynamic capabilities theory provides the theoretical lens for the study. Findings The results indicate that the organizational environment is positively associated with distributor collaboration, which, in turn, is associated with sales and product innovation. Distributor collaboration partially mediates this relationship, serving as a mechanism through which the organizational environment is associated with innovation outcomes. Moreover, all path coefficients in the structural model were positive and statistically significant. Originality/value Drawing on dynamic capabilities’ theory as a theoretical lens, this study examines how distributor collaboration may support organizational responses to changing market and customer conditions. It further shows that distributor collaboration partially mediates the relationship between the organizational environment and sales and product innovation. The paper’s originality stems from positioning distributor collaboration as a specific relational mechanism linking the organizational environment with innovation outcomes. This mechanism highlights distributors’ distinctive role as downstream, market-facing partners that connect organizations with customer and channel knowledge.