Dynamic Capability Of SME Cluster

Small and medium-sized enterprises (SME) cluster is the main form in the regional economic development. Confronted with increasingly complex environment, dynamic capability of SME clusters is the base of competitive advantage and sustainable development. By collecting theories of cluster, dynamic capability, the paper provides an overview of current theory, analyzes the dimension of dynamic capabilities, that is, adaptability and creativity. Meanwhile, this paper builds three-dimensional model of dynamic capability of the cluster, that is, under the influence of market, technology, financing, knowledge, resources and network work together, following the way of variation-select-spread-maintaining. Dynamic capabilities of clusters based on dynamic capabilities of SMEs.Combined with evolution model, this paper researched on SMEs, and the research scope is identified by evaluating and cluster analyzing dynamic capability of29clusters. According to the results, this paper using Vensim software to build a system dynamics model of evolution factors of dynamic capability.In result, market, technology, financing and other environmental factors act on dynamic capability by influence the absorption and elimination of knowledge and resources. Network structure influences dynamic capability through impacting the share of knowledge and resources. In addition, learning plays a key role in the entire evolution process. Finally, the paper put forward recommendations for improving dynamic capability by the government, agency and enterprise. Government should build innovative platforms, introduce streamlined policy, build intermediary organizations, cultivate leading enterprises and encourage vertical division of labor. Agencies should improve service. Enterprises should establish information-based learning and communication platform, and establish learning incentives, strengthening cooperation.