Study on the inter-relationships among technology capability, innovation strategy and innovation performance

in order to solve the dilemma of strategic choice in the management practice, this study investigates the inter-relationships among technology capability (TC), innovation strategy (IS) and innovation performance (IP). Empirical evidences were tested with data from questionnaire. 326 technology directors and managers participated in the investigation. This paper implements a structural equation model to test the research framework and hypotheses. Research results indicate that the partially mediated model shows good model fitness for this relationship. It finds that TC has a significant positive effect on IS. Higher TC of enterprise tends to adopt inner innovation, and the lower one tends to adopt external innovation. Moreover, TC has a significant positive effect on IP, and IS has a significant positive effect on IP. The dilemma of performance has an inverted effect on IS, which means, when meeting with performance dilemma, manager tends to adopt radical innovation and external innovation.