Dynamic Capabilities and Firm Performance: An Empirical Study of Chinese New Ventures

Capability-based theory believes dynamic capabilities as the senior stage of corporate capabilities is very crucial to firm's growth and development. Based the analysis on 877 samples of high-tech new ventures, this paper explored the relationship between dynamic capability and firm performance. The empirical result shows that the three dimensions of dynamic capability which include dynamic mechanism, learning mechanism and matching mechanism are all positively associated with firm performance with a descending degree of their influence. Finally we analyzed the empirical results and offered an outlook for the future research.