As an important source of innovation, customers play an increasingly important role in the process of corporate innovation. Bringing customers into the innovation process is the key path for a firm to embrace open innovation. Base on the exiting literature, this paper developed a framework which involved customer participation, dynamic capacity, industrial environment, and corporate innovation performance. Using a survey of 269 manufacturing enterprises, the results of a moderated mediation analysis showed that: (1) the higher degree of customer participation led to better innovation performance; (2) dynamic capacity mediates the relationship between customer participation and corporate innovation performance; (3) industrial complexity negatively moderated the mediation effects of dynamic capacity, i.e., when the complexity was higher, the influence of customer participation on corporate innovation performance through was dynamic capacity weaker.