Dynamic Capabilities As A Mediator Linking Knowledge Acquisition And Dual Innovation Of OEM

The OEM(Original Equipment Manufacture)business of China is currently moving towards a small profit era. With the labor costs rise and prices rise, the advantages of Chinese manufacturing have been gradually lost. The Chinese foundry business who had made major contributions toward China’s economic development is suffering from "cold", and low value-added foundry model is undergoing tests. How to help the Chinese foundry enterprises beckoning and get rid of the "low-end locking" of the international leaders? In the final analysis, the foundry enterprises should be sufficient to absorb external knowledge of technology and market, and then nurture and enhance dynamic capabilities to deal with the complex external environment, so as to realize innovation, transformation and upgrading of foundry enterprises.This study reviews the theory research of absorption of knowledge transfer,dynamic capabilities and technological innovation of the foundry business at home and abroad. From perspective of Global Value Chain and domestic value chain, the use of knowledge transfer is divided into the use of technical knowledge and market knowledge. Dynamic capabilities are divided into restructuring transformation capabilities and the ability to coordinate and integrate. Technology innovation is divided into incremental innovation and radical innovation. Samples were collected from the Pearl River Delta region of 215 valid copies, mainly covering the four industry and the establishment of different age and nature of the foundry enterprises.The results of the study show: foundry technology and the transferred use of market knowledge have a positive impact on its technological innovation,especially, the use of technical knowledge transfer making a greater impact on breakthrough innovation, and market knowledge transfer making more influence on incremental innovation; The absorption of knowledge have positive influence on dynamic capabilities, and the absorption of Technical knowledge have a greater impact on the ability of recombinant transformation, the absorption of market knowledge have more influence to help integrate ability; Dynamic capabilities have a positive impact on technological innovation, restructuring transformation ability are more likely to lead to radical innovation, The ability to coordinate and integrate more easily lead to incremental innovation; The intermediary effect of the technology innovation and utilization of knowledge transfer of dynamic capability is remarkable. And the purely technical and market knowledge is not directly lead to breakthrough innovations,but must to regard reconstruct the restructuring transformation ability of the existing knowledge resource as mediation. The finding on the transformation and upgrading of Chinese foundry business has important theoretical and practical guidance.