Abstract

Product innovation integrates technology, knowledge, management practices, and market innovation, making it essential to gain a competitive advantage. Effective management of dynamic knowledge, which is the foundation of and driving force for product innovation, is a powerful tool that allows a firm to successfully innovate, adapt to environmental changes, and improve its competitiveness. In the “nanosecond age,” unlearning and learning in an organization is crucial to a firm’s ability to promptly update its organizational knowledge and maintain innovation vitality. Based on the dynamic knowledge management perspective, this study integrates and constructs a theoretical model with environmental dynamism as the moderating variable, discusses the impact of organizational unlearning on product innovation performance, and empirically analyzes 208 valid questionnaires in the Yangtze River Delta using the multiple regression method. The results show that organizational unlearning shares a positive relationship with dynamic capabilities and product innovation performance. Dynamic capability is positively related to product innovation performance and has a partial mediating effect on the relationship between organizational unlearning and product innovation performance. Environmental dynamism shares a positive moderating effect on the relationship between organizational unlearning and product innovation performance. This study deepens the existing research on the factors that influence product innovation performance, which may help firms improve their dynamic knowledge management and product innovation performance.