The SME Internal Value Chain Financial Performance And Competiveness Analysis

Whether an economy has vitality or not, largely depends on the situation and thedevelopment of its small and medium-sized enterprises. At present, the development of SMEsin China is at in a new historical starting point and is in the critical period of focusing oncultivating development and accelerating the transformation and upgrading. The rigidconstraints of structural adjustment, energy-saving, emission reduction and the macro-controlof the tightening monetary policy present serious challenge for a lot of small andmedium-sized enterprises. Under the background of economic globalization, with the influxof China’s entry into the world economy field and foreign companies entering, small andmedium-sized enterprises in our country will face the competition of the international market.How to enhance the competitiveness of enterprises and strengthening the country’scompetitiveness has become the focus of our concern.Strategic management expert Michael Porter in1985put forward the theory of the valuechain, value chain will be in the field of business management theory has been widely applied.Some scholars financial results from the operation of enterprises value creation perspective,emphasizing on the value of the movement and its relationship management, capital chain isthe manifestation of the enterprise value chain. Therefore, the value chain is an objectivereality, reflect the company’s value creation process and the implementation process as aprocess implies a form of value during various economic interests. This gives us a newperspective on enterprise management mode, breaking the traditional limitations ofdevelopment and financial strategy, creating new ideas and fields.This study summarizes the results of the research based on the financial performance ofSMEs to the internal value chain as the starting point of the empirical research, small andmedium enterprises in Chengdu, targeting an important part in the chain to create valuemanagement to explore strengthen business capacity and financial management capacity,extend the internal value chain to create value for the enterprise. Provide a positive referencefor analysis and decision making for enterprise management, the development ofglobal-oriented, long-term business development plans carried out from the perspective of thesystem and the dynamic development of research, management and control of the entire chain:(1) to extend the enterprise internal value chain;(2) the integration of resources, focus onvalue-creating aspects of the value chain;(3) internal financial control of the value chain；(4)to strengthen human resources management；(5) building strategic alliances of SMEs.Compared with other studies at home and abroad, new insights in this study are: businessmanagement in the value chain theory as a framework, based on the financial performancedriven competitive environment for enterprises to maximize value creation and valuedistribution, not only to meet their own value creation, but also to let customer satisfactionand improve the perceived value of enterprises, enhance profitability, and strengthen core competitiveness of enterprises, exploring Chinese SME management model to improve SMEsin the international market competitiveness.