Dynamic Capabilities, Technological Innovation And Corporate Performance

Since twenty-first Century,with the rapid economic development of China’s market environment has also undergone dramatic changes,the development and even survival of many enterprises have been seriously threatened,market competition has become a challenge that every enterprise must face.In the fierce market competition,if enterprises want to maintain the sustainable development ability among the industry leading position,they must keep highly docking with changes in the external environment of dynamic capabilities,and realize the technology innovation,so as to improve enterprise performance.In this paper,the longitudinal single case study method is used to study the influence path and mechanism of the dynamic capability on the performance of Weichai power,which is in the leading position in the industry.The research results show that technological innovation can promote the increase of enterprise performance in the three different stages of innovation,cooperation and innovation.With the capability of absorbing the knowledge,the company should introduce the advanced technology first,and then innovate based on that to upgrade the products which will raise the company market share,increase customer satisfaction and finally improve the enterprise performance.Also,with mature technical improvement competencies,as well as integration ability,Cooperative R&D(Research and development)and technology acquisition should be the next stage of improvement,which will change the business structure,push the economic growth,and hence improve the enterprise performance.Ultimately,advanced integrated method and cutting-edge product would expand overseas income,promote brand image,popularity of the product and hence improve the enterprise performance.Embodied in the three stages of knowledge absorption,knowledge integration and knowledge integration capability are essentially dynamic capabilities,and the existence of dynamic capabilities is an effective support for each stage of technological innovation to realize.