The Impact Of Information Technology Investment For Sme Competitiveness

Big data initiates the new social change, which requiring companies to adjust the strategic vision and to take acquired data and purified useful information as the basis for making decisions. Chinese enterprises, especially some tech SMEs express an extensive mode for information construction. some companies hardly bring the positive return through substantial investments. Particularly financial problems of tech SMEs have not been resolved. There are limited resources that companies can take advantage of. So it is essential for the development of enterprises and even the country’s future economic that how to choose the suitable strategy of informationization, to solve the key problems existing in the course of informationization construction.Informationization is the core competence of survival and development of enterprises in the era of big data. In recent years, some issues have been discussed from theoretical and empirical aspects in relevant literature at home and abroad, such as how the degree of companies’ informationization exactly affects competitiveness, whether and whether there is a positive correlation between investment and return in informationization. However, the domestic empirical study of informationization is rare and lack of a comprehensive input-output measurement. And it is also not clear enough to define sources of investment in informationization.Based on the above background, firstly, this article establishes the theoretical framework of informationization and the competitive advantage through the existing domestic and foreign research and the definition of related concepts.secondly, it analyzes the situation and main problems about the development of information technology in tech SMEs. Finally, based on the concept of resources, it analyzes the key factors in the formation of enterprise competitive advantage. On this foundation, the full-text research framework and mechanism is established. Then we choose representative companies in the gem listing to do empirical research. This paper selects 97 non-manufacturing companies in the gem listing as samples to measure the impact of information technology on business competitiveness through the financial performance and market performance of industries, using the method of two non-parametric test for independent samples. We take the enterprises which own larger information input as “target group”, the other enterprises as “reference group” through quantitative analysis of information technology infrastructure investment, outsourcing services investment, human resource inputs. Through two independent samples mann-whitney u test, we know that enterprises possess more superior financial performance and market performance which more information technology is invested. Enterprises can achieve different strategic objectives through information technology investment, which suggests that investment in information technology can effectively improve competitiveness of SMEs. By joins the short list of relatively studies, the sample was divided into industry leaders and other enterprises, which avoiding subjectivity and arbitrariness in pairing process. By using life-cycle theory we estimate the compatibility of information investment and the strategic objectives of industries in pre-mature period and mature period. This paper investigates the value of information technology in business production process. It also confirmed the productivity paradox does exist in tech-SMEs. Findings show that time-lagged effects the benefit of it, it takes at least 2--3 years. Finally, based on the above research this article provides strategy proposal for the tech SMEs.