Abstract: The relationship between dynamic capabilities and innovation is a black box. Drawing from both the resource-based view and the dynamic capability perspective, the different roles played by a firm’s resource stock and dynamic capabilities in the process of firm innovation are theoretically explored and empirically examined. The electronic information enterprises in Fujian Province are taken as research targets. Samples are collected by using questionnaire as a data collection tool. After the empirical study on these samples by using factor analysis, structural equation model, etc, the results indicate that the resource directly affect dynamic capabilities and dynamic capabilities directly affect innovation. Additionally, it is also found that the relationship between resource stock and innovation is mediated by dynamic capabilities. That is, merely possessing well-endowed resource is not sufficient for innovation in the hypercompetitive environment. The dynamic capability to renew and reconfigured its resources and capabilities and align them with the changing environment is of vital importance to the firm dynamically and constantly innovations.

Key words: hypercompetitive environment, resource, dynamic capability, innovation