The Role of Organizational Capability on Technological Innovation

Based upon the generalization of two theories in organizational capability and technological innovation, this essay discusses the role of organizational capability on technological innovation, and presents its relevant hypotheses. On analyzing the effective sample data from 509 enterprises of different industries across 10 provinces and cities in China, the empirical result reflects that dynamic capability has significantly positive correlation with product innovation and process innovation; while operational capability has only evidently positive correlation with product innovation. This shows that enhancing dynamic capability is beneficial to product innovation and process innovation; while enhancing operational capability is only beneficial to product innovation. Finally, under the common action of two capabilities, the amounts of product innovation will be more than the amounts of process innovation obviously. These conclusions provide some reference and guidance for the practice of organizational technological innovation in developing countries.