Abstract

Using a sample of 1397 manufacturing firms in China, this study explores how information and communication technology (ICT) stimulates innovation performance through interaction with investment in internal and external knowledge. The results of this study reveal that the adoption of ICT not only contributes to innovation by directly enhancing its output, but also affects the creation of knowledge along two different paths in Chinese manufacturing firms. Specifically, ICT mediates research and development (R&D) to foster innovative sales and it is an effective moderator in leveraging externally acquired knowledge.