Based on "Strategy-Structure-Performance" model point of view and related discussions on the demand for innovation from previous researches, this study aims to explore budget resource, IS information quality, process innovation and product innovation forming a capacity configuration, which we term “Innovation Capacity Configuration” (ICC), and the ICC to cope with innovation requirement and in turn to improve organizational performance. For examining the research model, we build a structural equation model and employ the questionnaire survey to collect empirical data from subordinate managers of electronic manufacturing corporates listed in the Taiwan Stock Exchange, the results show that budget resource, IS information quality, process innovation and product innovation are all significantly associated with ICC, in which, except budget resource has negative correlation, the others have positive ones, forming a solid innovation capacity. In addition, ICC positively affects organizational performance and is positively affected by innovation requirement. Based on the results, this study suggests the theoretical contribution and management implications.
