Abstract:In order to further study of small and medium-sized enterprise dynamic capability and the relationship between the enterprise innovation performance, on the basis of existing research, this paper introduces environmental dynamic regulation of this important variables, by analyzing the related literature review, constructs the dynamic capability, environmental dynamics, the basic theoretical framework between and among innovation performance model, then puts forward the research hypothesis. Through the questionnaire survey, data collection and processing has carried on the empirical research. Research results show that the dynamic capability of small and medium-sized enterprises has significant positive effect on innovation performance, environmental dynamics on the relationship between the dynamic ability and the innovation performance of small and medium-sized enterprises with adjustment. According to the study draws conclusions and enlightenment.