The Impact Of Dynamic Capabilities On Technology Innovation Of Small And Medium-sized Enterprises

Innovation is the soul of an enterprise. Vast majority of enterprises in China aresmall and mediumsized enterprises, so the technological innovation of SMEs is veryessential to China’s economic development. But in the increasingly fierce marketcompetition, weak innovation capacity of SMEs has become an obstacle to economicdevelopment. Better dynamic ability is one way for SEMs to make full use of limitedinnovation resources to compensate their weakness and improve their independentinnovation, and also a mean to build the core competitiveness of China’s futureeconomy.This paper’s theme is the dynamic capabilities of SMEs, we explore relationshipbetween the dynamic capabilities of SMEs and SMEs technological innovation. Westudy is divided into three parts: a literature review, empirical research findings andoutlook.In the literature review section, through the collation of literature and review, wesummarize the dynamic capabilities of SMEs into three components: Dynamic abilityto use material resources, Dynamic ability to use information, Dynamic ability torelationship coordination. And we bulid a SEM named dynamic capabilities impactsto technological innovation of SMEs. In the empirical research.Through conductingsurveys and collectting questionnaires to more than200SMEs of Zhejiang whichhave certain innovative capabilities, we verify the structural equation model. In thepart of conclusion and outlook, we explan the conclusion and add something to theSEM, And at last, we give some advice to develop dynamic capabilities of SMEs inChina and improve technological innovation of SMEs.