Growth Dynamics Of SMEs From The Perspective Of Gene

As an important force in economic development, SMEs play a very important part in China's economy. However, it's a very common phenomenon that SMEs are difficult to grow, making it an imperative issue to promote SMEs growth. In order to understand the growth power of firms, this paper uses the biomimetic approach to study the firm with the introduction of the "Firm Gene", a basic unit to study firm growth dynamics, and does an empirical study on the internal power of business growth.First of all, based on related literature, biological genes are mimicked to reconstruct a firm gene model, in which firm gene is divided into four genes:firm institution gene, firm technology gene, firm culture gene and entrepreneur gene. The four genes include thirteen major factors, whose functions are described in details. They are organizational structure, incentive mechanism, decision-making mechanism, information transmission, the core technology, technological innovation, entrepreneurship, firm learning ability, firm adaptability, organizational capacity of entrepreneurs, entrepreneur's decision-making ability, entrepreneur's communication skills and entrepreneur's innovative ability. Secondly, the paper analyzes the company's growth dynamic system from the perspective of firm gene. It argues that firm growth dynamics is driven by both external environment and internal power, which is identified to come from firm gene. Then, three firm gene mechanisms related to firm growth are put forward. Firm survival is determined by the inherited firm gene mechanism while the mechanism of firm gene restructuring affect firm's regeneration. Thirdly, a theoretical model on how firm genes influence is established, and empirical research on the factors influencing the internal dynamics of firm growth is done from the perspective of gene. It analyzes the sample by SPSS and LISREL on the basis of questionnaire. The SEM is used to test the effects and the result turns to be significant. The effects of four genes are in this order with regard to the degree:entrepreneur gene, firm culture gene, firm technology gene, and firm institution gene. Finally, with reference to conclusion of empirical study and the theoretical analysis, some countermeasures and suggestions proposed.