Collaborative culture, product quality, and firm performance

•Collaborative culture can significantly enhance corporate product quality.•This effect is stronger for firms with higher labor intensity.•This effect is stronger for firms in industries with higher innovation levels.•This effect is stronger for firms in regions with higher trust levels.•Enhanced product quality is associated with improved firm performance. We investigate the effect of collaborative culture on product quality using listed firms in China from 2007 to 2022. We find that collaborative culture can significantly enhance the level of corporate product quality. Heterogeneity analyses reveal that this effect is stronger for firms with higher labor intensity, those in industries with higher innovation levels, and those in regions with higher trust levels. Moreover, the positive impact of a collaborative culture on product quality contributes to improved firm performance. This study provides valuable insights from the perspective of collaborative culture to enhance a firm's competitive advantage in the product market.