The mechanism of innovation capability leveraging via strategy in SMEs

In some enterprises, the main problem that hinders the leverage of innovation capability is lacking the absorptive capability, which is usually caused by the high turnover rate of R&D talent. The root cause is the variance in strategic direction, which actually has negative effects on technological innovation. However, the research of enterprises' innovation capability leverage is still in the exploration. Concerning the problems in enterprises, based on the previous study at home and abroad, this paper focuses on how to leverage innovation capability through strategy. From the previous studies and two explorative case studies, a problem-oriented model is established, which focuses on how to leverage innovation capability through strategy. The hypotheses are proposed and tested by data from 420 small and medium sized enterprises that respond to our questionnaire. At last, some suggestions about how to leverage enterprises' innovation capability are proposed.