How to enhance enterprise's innovation performance is an important problem which is well worth thinking when the knowledge-based economy is opening up increasingly today. Taking the knowledge-intensive service enterprises as the example, we have made empirical study on how the different dimensions of dynamic capabilities, namely, sensing capability, learning capability and reconfiguring capability, affect the innovation performance of both exploration and exploitation. This study constructs and verifies a model of multi-dimensional dynamic capabilities to innovation performance using exploratory factor analysis and regression analysis. Result shows that enhancing any of sensing capability and learning capability in dynamic capabilities helps improve enterprises' exploratory and exploitative innovation performance. Sensing capability and learning capability affect exploratory innovation performance more than exploitative innovation performance. Reconfiguring capability plays a positively significant regulating role in the relationship between sensing capability and exploratory innovation performance. Therefore, when enhancing the innovation performance, a knowledge-intensive service enterprise should not only make efforts to cultivate the sensing capability for technology and market and learning capability for external knowledge, but also enhance reconfiguring capability for both of internal and external resources to form the foundation for future competiveness. This study contributes to previous research by showing how sensing capability and learning capability affect the various dimensions of innovation performance under the regulating effects of reconfiguring capability in dynamic capabilities.
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