Abstract:This research tested the model of interaction orientation,innovation and firm performance after investigating 100 companies in Canton.It is proved that when interaction orientation is high,the firm performance is also high in China.And interation orientation can significantly increase both exploitation and exploration.What s more,this effect to exploitation is much bigger than exploration.At the same time,exploitation could significantly increase firm performance but exploration can not.By the model exploration,we found that exploitation can positively relate to exploration.It means that progressive product improvement by exploitation can lead to radical inprovement of products,while it is not significant by exploration.