The Research Of The Applicability Of Disruptive Innovation Theory To The Small And Medium-sized Enterprises In China

The small and medium-sized enterprises in China become the most dynamic andimportant power of national economy, with the development of reform andopening-up and the market economy. But the development of the small andmedium-sized enterprises in China depending on the opportunism and the low costhave not been able to adapt to the requirements of the development of theeconomy,because of the changes environment in the financial crisis in2008, risingraw material and labor prices, joining the WTO in2001. How to make the steadydevelopment of the small and medium-sized enterprises in China has become theproblem we are faced.There are two reasons for choosing the theory of disruptive innovation as thetheoretical support. First, when the theory is put forward in1995, it is from the newentrants point of views to explain why the good companies are replaced by the newentrants when facing the mutation of the technology and market. Second,the paper"how to reshape the business model" won the "McCarthy award" in2008, and thefamous founder of the "blue ocean strategy" W·Chan Kim and Renee Mauborgne intheir latest article also used the disruptive business model concept. Clayton M.Christensen’s theory has made a great contribution to the economic of the developingcountries. All big enterprises develop from small enterprises, they are also as theindustry’s new entrants. Because the technology innovation ability of the small andmedium-sized enterprises in China is insufficient, how to use the theory of disruptiveinnovation to look for the profit growth point is a feasible way. Whether the theory ofdisruptive innovation apply to the small and medium-sized enterprises in China or notis become what we want to research.Our study use the multiple case study of Robert K.Yin to put forward threehypotheses, then using three cases to test the three hypothesis is established or not oneby one. If it gets the same results (set up), this study can be concluded. The threehypotheses is followed. First, when the disruptive ideas of the small andmedium-sized enterprises in China pass the "litmus test hypothesis", it will be succeed.If the ideas of the small and medium-sized enterprises in China can gets theconsumers of the low-end or new market, and for the main competitors having thepotential damage, the idea is disruptive. Second, when the organization structure of the small and medium-sized enterprises in China match the RPV framework ofdisruptive innovation, the disruptive ideas will be succeed. RPV framework illustratesa company has the ability of disruptive growth or not. At the initial stage, theresources especially human resources play a key role. As companies increasinglymature, the procedures and values can make companies sustainable development.Third, when the business model of the small and medium-sized enterprises in Chinamatch the disruptive business model innovation, it will be succeed. The technologyinnovation ability of the small and medium-sized enterprises in China is poor.We canuse a new way to search development. If all three hypotheses through, then we canconclude that the disruptive innovation theory apply to the development of the smalland medium-sized enterprises in China. Finally, we put forward some suggestions tothe small and medium-sized enterprises in China to use the disruptive innovation.