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Shifting focus from innovation quantity to innovation quality becomes a priority in innovation study, business and policy. This paper aims to figure out whether and how knowledge recombination (recombinant exploration/recombinant exploitation) affects firms' innovation quality (technological value/economic value) and how these relationships are moderated by environmental turbulence (technological turbulence/market turbulence) in the context of open innovation.

A panel data set is built on 373 Chinese pharmaceutical firms' patents and new product data from 1997 to 2020. And a negative binomial regression model is applied to test the hypotheses.

The analyses indicate that (1) recombinant exploration favors technological value but hinders economic value, while (2) recombinant exploitation benefits both. Regarding environmental turbulence's moderating effects, (3) technological turbulence has opposite moderating effects on the impacts of recombinant exploration versus exploitation on technological value, whereas (4) market turbulence benefits the impacts of both on economic value.

This research provides the answer to practitioners' question that “How to improve innovation quality?” That is “Think from a recombination logic, clarify your internal value preference and the external turbulence.”

From an emerging perspective of innovation, this research expands the innovation quality research to a recombination logic. A multi-dimensional research framework is developed to clarify the complex relationships between knowledge recombination and innovation quality. Finally, two moderators, technological versus market turbulence, formulate more targeted implications for firms' innovation management in open innovation.

The idea that relational processes are central to knowledge creation and knowledge sharing is an idea in good currency (Bouwen & Taillieu, 2004; Brown & Duguid, 1996; Wenger, 1998). Rather than considering knowledge as a commodity that can be transferred from one mind to another, when knowledge is viewed as a relational practice, it resides in social interactions and is actualized in common practices that evolve within a particular community of practice (Sternberg & Horvath, 1999; Van Looy, Debackere, & Bouwen, 2000). Thus, knowledge is both embedded and emergent — subject to change as participants in a community interact with one another. To understand what is known, it becomes necessary to study how members of an organizational community interact and how their knowledge shifts over time.

This book focuses on the concept and role of relational practices as a way to understand, conceive, and study processes of organization, and subscribes to a processual view of organization that, since Weick's seminal book The Social Psychology of Organizing, has turned the study of organizations into one of organizing. More than 30 years later, the field of organizing has increasingly expanded Weick's interpretive framework of sense making, resulting in a rich palette of conceptual frameworks that vary between such diverse processual approaches as complexity theory, phenomenology, narration, dramaturgy, ethnomethodology, discourse (analysis), practice, actor-network theory, and radical process theory (Steyaert, 2007). These various theoretical approaches draw upon and give expression to a relational turn that has transformed conceptual thinking in philosophy, literature, and social sciences, and that increasingly inscribes the study of organization within an ontology of becoming.