RESEARCH ON THE IMPACT OF FIRM'S INNOVATION - DRIVEN ON NEW PRODUCT INNOVATION PERFORMANCE

The framework of this research is based on the discovery in the clues of former researches that Innovation-driven is the pre factor for the firm to grow up or to gain the competitive advantage, and among them, innovation comes mainly form market pull and technology push (DOSI, 1998). The study taking market orientation and technological opportunity as innovation-driven factors, which are two major determinant factors for the firm's gaining the competitive advantage and improving the performance and profits. Based on knowledge-based theory, a questionnaire survey of 335 high-tech and Internet firms in China was conducted to empirically analyze the relationship between innovation-driven, absorptive capacity, and new product innovation performance. The article found that: the absorptive capacity mediates the relationship between innovation-driven and new product performance, and market turbulence negative adjusts the relationship between market orientation and absorptive capacity. This study emphasizes the importance of the firm's focus on changes in customer needs to pursue the cultivation of their own absorptive capacity. The evidence contributes to the development of innovative literature and knowledge-based theory.