As the backbone of national strategic development, Complex Product Systems (CoPS) have made great achievements in China, the world’s largest demand market and second largest economy. However, their further development is challenged by the dynamic environment, including the ongoing Sino-US trade friction, for example. The aim of this research is to investigate the influence of the dynamic external environment on CoPS innovation. Based on contingency theory, this study identifies and investigates the moderating effects of technological and market dynamism on the relationship between the integrator’s coordination and its technological innovation performance. Using survey data from 209 CoPS integrator enterprises in China, the findings show that (1) the positive effect of an integrator’s coordination on technological innovation performance is strengthened by technological dynamism, while (2) weakened by market dynamism. In addition, (3) the technological dynamism acts as a higher-order moderating role in inhibiting the negative moderating effect of market dynamism on the main effect in general. Furthermore, (4) an unexpected but inspiring finding shows that the integrator’s coordination facilitates innovation most when both the technology and market dimensions are highly dynamic. This study may indicate that managerial recognition may have significant influence on enterprise’s behavior.
How Knowledge Acquisition Diversity Affects Innovation Performance during the Technological Catch-Up in Emerging Economies: A Moderated Inverse U-Shape Relationship