Based On Life-cycle Theory Of The Growth Of Smes Research

As the external environment, policy environment in Guizhou unfair competitive market is not standardized, the social service system imperfections, Therefore, in its own SME development, industry orientation is low, technological innovation is not enough to operate, the quality is not high, the weak eco-environmental awareness, environmental pollution and serious, the whole, economic efficiency is poor, especially the strategic growth and construction of dynamic capabilities is common problems of SMEs in Guizhou. This state of affairs and corporate strategy development needs of this region are extremely incompatible. Coupled with "information asymmetry" is the current common problems faced by enterprise development.The growth of enterprises is a content-rich, very complex research topic. Contents from research point of view, the growth of enterprises involved in various businesses in the external environment, enterprises have the resources, the enterprise's competitive power, the enterprise's management level and so on; From the theoretical tool of view, business growth, the study related to economics, management science, systems science, mathematics and biology and other related disciplines of knowledge. In addition, enterprises in the growth process at different stages will face different problems, different strategies must be taken to seek survival and development. In view of the complexity of research and study the characteristics of the framework, this chapter focuses on business growth are closely related with the basic theory and the latest theoretical viewpoint. Research firm growth and development, we can learn from experiences of developed countries in the new historical conditions, the use of new scientific and technological achievements, at present, China's economy is in transition, the planned economy to market economy, there is quite a long time conversion process, as well as state-owned enterprise reform, social security system and the establishment of a series of east and west and uneven development thorny issues awaiting solution. First of all, the life cycle of small and medium enterprises in Guizhou to be divided, the division of corporate life-cycle basis can be established from two aspects. First, by understanding the factors that determine the development of private enterprises to carry out the establishment, this is a clear decision on the development of enterprises through the intrinsic motivation approach to establish the division of authority:the second, by looking at the different enterprises in different stages of development shown by the common characteristics of to establish, that is, through the business at different stages of life to establish the performance of the external division of the basis.External performance of these capabilities for the enterprise life cycle of qualitative and quantitative indicators. From the quantitative indicators point of view, basically include the duration of existence of the business (corporate life); enterprise-scale size (the performance of the external two aspects:namely, the number of employees and the number of assets); from a qualitative point of view of indicators The main assets is the ability to add value, that is corporate profits. From the static and dynamic point of view to carry out inspection, is through the growth performance of these indicators for evaluation at different stages of corporate life cycle, the basic symbol. In general, foreign research results on the corporate life cycle stages of division are not the same standard, many studies on the life-cycle division is based on the results of the questionnaire reflected in several features of the enterprise(Dodge & Robbins.,1992;HankSetal.,1993; Smithetal.,1985; Tuason.,1973).In addition, many researchers also a number of financial indicators and non-financial indicators to analyze the division. Although different scholars for the organization, from creation to disappear in the middle is divided into several different stages and at a critical turning points there are many controversial, but the basic ideas are broadly consistent with:Enterprise organizations typically go through the initial start, fast-growing and stable development of and the gradual decline in such processes, these stages have the following in common:continuity; gradual and irreversible; involved in organizing activities, structure, wide range of content. Integrated all views and private enterprise's own characteristics, this authority:1. total asset growth rate; 2.per capita sales revenues; 3. firm size, will be the life cycle of small and medium enterprises in Guizhou is divided into entrepreneurship, growth, maturity the recession period of four stages.Then, on the corporate life cycle and life cycle of the relationship between dynamic capabilities to locate, enterprise development and business development of dynamic capabilities are related to fundamentals and various capacity factors are closely related, so the life cycle of corporate dynamic capabilities and corporate life cycle of the existed between the more significant trends in consistency, but the corporate dynamic capabilities must be based on a variety of basic elements of the enterprise and ability to fully play its role as the basis of the elements, therefore the starting point of their life cycle, the time has lagged far behind in the corporate life cycle, the starting point of time. This paper argues that dynamic capabilities in business enterprises of various elements of a gradually improving sprout growth period, and accompanied by the gradual formation of enterprise development, maturity and decline.Finally, by the life-cycle theory, and combined with growth in economic theory, analytical framework, enterprise growth and dynamic capabilities together to business growth as the goal, the dynamic capabilities of enterprises to build elements of each stage in the life-cycle can be achieved; dynamic capabilities of the built elements in the development process of enterprise life cycle is also evolve, deal with life-cycle of the relationship between the dynamic capabilities is the key. The macro level, from the start-up phase to establish the viability of the system to the growth stage and then to the competitiveness of maturity, resulting in transformation period, the establishment of corporate culture; the micro level, technical level of concern from the start-up phase, to the growth stage focus on quality and brand value, concerned about the costs to maturity, to the metamorphosis attention to product innovation.Through the above factors in depth analysis. In this paper, actual conditions, the use of growth-cycle theory and dynamic capabilities theory of the growth of small and medium enterprises in Guizhou to conduct systematic research to explore in depth the basic law of the growth of small and medium enterprises, research how to make the healthy growth of small and medium enterprises, is constantly growing, no doubt has important practical significance and a long-term strategic significance.