Research Of ERP Implementation Affection On Management Innovation In Chinese Small And Medium Enterprises

The amount of small and medium enterprises (SMEs) in China has exceeded twelve million, accounting for 99% of total amount of Chinese enterprises. Undoubtedly, SMEs can be regarded as one of major power promoting Chinese economy and prosperity. Meanwhile, SMEs provide huge amount of employment opportunities. Due to the important position of SMEs, developing SMEs is the inevitable tendency of economic development. However, majority of SMEs have many problems to restrict their development, for example, some enterprises are lack of advanced management theory or management system. To solve these problems, improvement of external environment need government support, however, dealing with internal problems rely on enterprises' effort. Innovation plays an important role in changing SMEs' present status. Because of SMEs' fund and resource restriction, it is very difficult for them to do technical innovation, management innovation becomes a realistic choice for SMEs. Moreover, management innovation can enhance institutional innovation and technical innovation. There are quite plentiful research related to management innovation implementation. In this paper, the author will discuss relationship between Enterprise Resource Planning (ERP) implementation and management innovation, and put forward countermeasures and suggestions of how to use ERP to promote management innovation.This paper will use various methodology, such as demonstration analysis, theorization analysis, macroscopically analysis and microcosmic analysis to do research on management innovation methods and approaches for Chinese SMEs. Based on analysis of Chinese SMEs' present status and existing problems, the author demonstrates important meaning of management innovation for SMEs from different perspectives. As the integration of advanced management theory and best practices, ERP can satisfy the requirement of management innovation for SMEs in China. The author put forward ERP implementation strategies and methodology for Chinese SMEs. Relying on ERP implementation case from XH Company, feasibility of the ERP implementation strategy framework is validated. There are two innovation points in this paper. Firstly, Balanced Scorecard is used to demonstrate that ERP implementation is an effective approach for Chinese SMEs to do management innovation or realize strategy upgrade; Secondly, this paper develops a detailed framework for effective ERP implementation based on Chinese SMEs' practice.