The study looked at how entrepreneurship, absorptive capacity, technical capability, and innovation performance are connected in Chinese companies. They found that entrepreneurship has a positive impact on a company's ability to learn and use new knowledge. This, in turn, helps improve the company's technical skills. While the direct link between absorptive capacity and innovation performance was not strong, it did have a positive effect when combined with the company's actual ability to absorb new knowledge. Overall, improving a company's absorptive capacity can lead to better technical skills and innovation performance.