The analysis of \gamma -ray flux variability along with the parsec-scale jet kinematics suggests that the high-energy radiation in the BL Lac object S5 0716+714 has a significant correlation with the mm-VLBI core flux density and with the local orientation of the inner jet flow . For the first time in any blazar , we report a significant correlation between the \gamma -ray flux variations and the variations in the local orientation of the jet outflow ( position angle ) . We find that the \gamma -ray flux variations lead the 7 mm VLBI core flux variations by 82 \pm 32 days , which suggests that the high-energy emission in S5 0716+714 is coming from a region located 3.8 \pm 1.9 parsecs closer to the central black hole than the “ core ” seen on the mm-VLBI images . The results imply a strong physical and casual connection between \gamma -ray emission and the inner jet morphology in the source .