How do Chinese SMEs enhance technological innovation capability? From the perspective of innovation ecosystem

Purpose The purpose of this study is to investigate the influence mechanisms of multi-level ecological participants on technological innovation capabilities within the focal small and mid-size enterprises' (SME) innovation ecosystem. The author examines the moderating role of the innovation ecological environment. Design/methodology/approach With the lenses of innovation ecosystem theory, technological innovation theory and ecological theory, the author constructs and empirically tests a conceptual framework for exploring the effects of the focal SME's connections with universities and research institutions, and the industrial chain and ecosphere on their independent and collaborative innovation capabilities. The innovation ecological environment is employed as a moderating variable in the proposed model. The author issued email questionnaires to managers at innovative SMEs in Shenzhen, Shanghai and Jiangsu provinces. The data were used for multiple regression analyses to test the hypotheses. Findings As predicted, the author found that SMEs’ cooperation with universities and research institutions positively affects independent and collaborative innovation capability. The relationships between the industrial chain, the ecosphere and independent and collaborative innovation capabilities are all inverted U -shaped. Additionally, the author demonstrates that the innovation ecological environment positively moderates relationships between the focal SME's ecological participants and these two types of technological innovation capabilities. Originality/value The results enrich research on innovation ecosystems and technological innovation capability and provide important managerial implications for Chinese SMEs to enhance their technological innovation capability by constructing and coordinating innovation ecosystems. It also allows China, as well as other developing countries, to cultivate world-class enterprises as an innovative nation.