The steering gear is either connected directly to the lower shock absorber housing, or to an arm from the front or back of the spindle (in this case). When you steer, it physically twists the strut and shock absorber housing (and consequently the spring) to turn the wheel. Simple. The spring is seated in a special plate at the top of the assembly which allows this twisting to take place. If the spring or this plate are worn, you'll get a loud 'clonk' on full lock as the spring frees up and jumps into place. This is sometimes confused for CV joint knock.