The Research On Relationship Among Organizational Innovation, Core Competence And Organizational Performance In Dynamic Environment

The competitive environment enterprises face has become more and more complex since 1980's; competition has also become more intense since then.Companies which cannot implement innovation would die away in this turbulently changing era, especially currently, as a result of international financial crisis, there is a shrinkage in market consumption and demand. Even more, economic slumps, market competition became more and more fiercely, technology developed more and more fast, the dynamics degree of environment has been promoted little by little,all of which will have a great effect on the survival and development of enterprises.Researchers, academicians and firm leaders have stated that organizational innovation perhaps the most important strategic resource for firm to win core competence and organizational performance in dynamic environment. Some foreign and domestic scholars have employed some aspects of research withdescriptive and estimate measurements about organizational innovation and organizational performance. But until today, few researchers have employed one experimental model to study the relationship among all four of them at the same time.Therefore, this paper will supply not only a new direction for management theory research, but also a scientific base for organizational innovation for Chinese industrial enterprises. It would be meaningful and worthwhile to make further inquiry in this field on how organizational innovation impacts core competence and organizational performance, and whether related foreign studies are adaptive for domestic companies.This paper focuses on the studies about the theories, approaches,and ways in the fields of organizational innovation, core competence and organizational performance in dynamic environment, adopts methods of inductive and deductive, quantitative and qualitative analysis comprehensively,such as reliability analysis,factor analysis, one-way ANOVA, regression analysis, correlation analysis, structural equation modeling, multiple moderated regressions and so on.It is based on the basic theories and ways of organizational theory, innovational theory, core competence theory and statistics.The first part, Introduction:This part mainly introduces the background of this issue, the significance of this issue, the context, research methods, new insights and researching route of the research.The second part, this part mainly analyses indicates the theoretical and practical significance of the research, comments comprehensively on the current research situation both at home and abroad, and makes an outline of the paper.The third part, this part analyses the basic theory, which serves as the theoretical framework for the research. Guided with organizational innovation and organizational theory, the author analyses the impacts of organizational innovation on core competence and organizational performance theoretically. In this part, we study the relationship among organizational innovation, concept innovation, architectural innovation, management innovation, institutional innovation, core competence, organizational performance; we also research whether environmental turbulence has a moderating effect on the relationship between organizational innovation and core competence. The author put forward a theoretical model of the impact mechanism of organizational innovation on core competence and organizational performance, coming up 9 hypotheses.The fourth part,in order to verify the theoretical analyses results, the paper uses data collected from questionnaire survey conducted among companies in Sichuan zone, to conduct structure equation modeling(SEM) and moderated multiple regressions(MMR).The author tests the theoretical model, revises it according to the investigation results, and expatiates on the theoretical explanation.The last part, Based on the theoretical and empirical research results, the author come up with a series of countermeasures and some suggestions to improve core competence, organizational performance efficiency through organizational innovation in dynamic environment.This paper detects and verifies the following hypotheses:(1) Organizational innovation has positive impact on core competence. (2) Concept innovation has positive impact on core competence (3) Architectural innovation has positive impact on core competence partly. (4) Management innovation has positive impact on core competence. (5) Institutional innovation has positive impact on core competence.(6) Core competence has positive impact on organizational performance.(7) Core competence is an important media variable during the impacts of organizational innovation on organizational performance, in other word, organizational innovation has indirect impacts on organizational performance.(8) The result of a study on moderating effect shows that market turbulence has a moderating effect on the relationship between organizational innovation and core competence. (9) As well, the result of a study on moderating effect also shows that technical turbulence has a moderating effect on the relationship between organizational innovation and core competence.Moreover, we also find that:(1) the factors of organizational innovation have different impact on core competence. Comparing with concept innovation and architectural innovation, management innovation and institutional innovation have more important impact than others. (2) Core competence has the levels structures, which have different impact on organizational performance. (3) Organizational innovation impacting on organizational performance depends on the time.Studying the impacts of organizational innovation on core competence and organizational performance in dynamic environment,is not only an academic problem but an urgent issue in the business practice as well.This paper offset the related research both at home and abroad by clarifying the impact mechanism of organizational innovation on core competence and organizational performance,which makes the paper innovative and instructive both in theory and practice.As our study is not an in-depth study about the relationship among organizational innovation, core competence and organizational performance,there must be some shortcomings in this paper.But the index of measuring organizational learning may be useful in future study of this field.