This paper discusses the evolution track and micro-mechanism of LCFs’ technological innovation capability from the perspective of integration of “Innovation Strategy-Innovation Paradigm-technological Innovation capability(SPT)”. It makes an longitudinal exploratory case of Huawei Company from 1987 to 2018. In this paper, it is found that: first, Huawei’s evolution of technological innovation capability is “Imitation Innovation capability-Primary Secondary Innovation capability - Ripe Secondary Innovation capability - Integrated Innovation capability - Original Innovation capability”. Technology innovation capability can be measured from three dimensions of technical distance, technical efficiency and technical reserves. Second, absorptive capability is the intermediate variable between the interaction of innovation strategy and technological innovation capability. Third, the driving mechanism, regulating mechanism and catalytic mechanism among the integrated evolution model in SPT of LCFs’ are respectively the Knowledge Cycle Mechanism, Knowledge Diversity and Dissipative Structure Theory. The theoretical contribution of this paper is as follows: it provides a new theoretical perspective for the follow-up research, and also provides a theoretical reference for the existing LCFs to get out of the bottleneck of development.

Exploratory innovation plays a crucial role in the high-quality and sustainable development of organizations, but how enterprises engage in exploratory innovation within volatility, uncertainty, complexity, and ambiguity (VUCA) contexts remains unclear. Drawing on strategy choice theory and continuous innovation theory, this study explores the positive effects of technological capability on exploratory innovation via entrepreneurial orientation while considering environmental uncertainty as a moderating variable to elucidate the internal logic of continuous innovation within organizations. We conducted a large-scale survey of 313 Chinese firms and found the following: (1) technological capability has a significant positive impact on exploratory innovation; (2) entrepreneurial orientation plays a partial mediating role between technological capability and exploratory innovation; and (3) environmental uncertainty exerts a differential moderating influence within this mediating framework: technological uncertainty enhances the positive effect of technological capability on entrepreneurial orientation, whereas demand uncertainty intensifies the supportive effect of entrepreneurial orientation on exploratory innovation. This study reveals the internal mechanism by which technological capabilities drive exploratory innovation through entrepreneurial orientation under environmental uncertainty, providing theoretical support for enterprises to deepen their technological capability and pursue exploratory innovation and sustainable development.

The concept of Leading Innovation is tentatively defined from four dimensions: Value, Attitude, Effect and Driving (VERD). The value orientation of innovation-leading is beyond the satisfaction of enterprises’ own interests and values. It is committed to the dual balance between enterprises’ own interests and the promotion of social interests, and attaches more importance to the realization of their own interests during the process of promoting social progress. Leading Innovation leads innovation to a higher level, which requires a stronger sense of social responsibility as the guidance, in an innovative way to “guide, leading” the choice and implementation of corporate strategy, so as to achieve positive interaction between the value of enterprise benefits and social value, promote the progress of human society; In addition to building sustainable competitive advantages of enterprises, the effect of innovation-leading is more important because of its contribution to industrial technology and social progress; The driving force of innovation is innovation culture.