Abstract:Based on existing studies, environment uncertainty was divided into two dimensions, named dynamism and hostility, how they influence enterprise innovation respectively was analyzed. In addition, the moderating role of business group in the relationship between environment uncertainty and enterprise innovation was examined. The empirical results suggest that, an enterprise tends to increase its investment in R D when the degree of its environment dynamism is high, and it tends to decrease its investment when the degree of its environment hostility is high. Moreover, the roles of different kinds of business group are different: Industrial business group can weaken the impact of environment dynamism on enterprise innovation, while holding business group can weaken the impact of environment hostility. Our research conclusions are significant in both theory and practice. They enriched studies on the relationship between organization and environment, and identified the buffering role of business group.