Research On The Relationship Between Technological Diversification And Enterprise Innovation Performance

With the rapid development of economic globalization and the advance of science and technology, companies should pay more attention to technological innovation and implementation of technological diversification strategy to improve innovation performance and competitiveness in the increasingly turbulent market environment. Technology is the most fundamental part of enterprise core competence. The process of transforming technical knowledge into competitive products, processes and technologies is the embodiment of the level of technological innovation. The improvement of technology innovation ability depends on the diversity development of technology. The effective implementation of the diversification strategy reflects the organization’s overall management ability, which requires the enterprise to own the ability to perceive the external changes and coordinate the integration of all kinds of resources. Dynamic capability is just the higher-order ability to coordinate the integration of all kinds of resources in the rapid change of the environment. It, embedded in the organization management process, has an important influence in the choice of technology diversification strategy and the promotion enterprise’s innovation performance. The relationship between technology diversification and enterprise innovation performance has made a wealth of research results. The existing literatures researching on the relationship of technological diversification and firm innovation performance have a lack of study from technological breadth and depth of technological diversification,also ignore that dynamic capabilities have moderating effects on the relationship of technological diversification and firm innovation performance. This study has great significance for the diversification theory and dynamic capability theory,and also enterprise management practice.This paper reviewed the technological diversification, enterprise innovation performance and dynamic capabilities literatures, analyzed the relationship between technological diversification and enterprise innovation performance from the two dimensions of bread diversification and deep diversification, analyzed the regulation mechanism of dynamic capabilities from external adaptation ability and internal resources integration ability. On this basis, this research put forward two hypothesis,one is technological breadth and depth has positive effects on firm innovation performance,the other one is that dynamic capabilities has a significant positive moderating effects on the relationship between technological breadth or depth and firm innovation performance. The sample of this study from 304 GEM listed companies in manufacturing industry from 2010-2014 year data. After careful collation,classification, screening, the final selection of 175 GEM listed company is the study sample, a total of 875 group data in 5 years.According to the assumption put forward before, this paper constructed the corresponding empirical model, used the SPSS to finish the initial analysis and regression data processing, to verify the rationality of the hypothesis. The research results show that technological breadth has a positive effect on firm innovation performance. Technological depth has a positive effect on firm innovation performance. Dynamic capabilities has a significant positive moderating effects on the relationship between technological breadth or depth and firm innovation performance. In view of the above conclusions, this paper put forward the corresponding countermeasures and suggestions, improving the dynamic capability of the enterprise to promote the implementation of the diversification strategy and enterprise innovation performance.