Research On The Relationship Between SME Information Strategy And Business Growth

With the rapid development of information technology, the SMEs in China are confronting new opportunities and severe challenges at the same time. In order to gain a competitive advantage in fiercely competitive environment, SMEs implement information technology and information strategy to reduce production costs, optimize business processes and improve the management level, thereby enhancing the comprehensive strength of the enterprises. Because the period of information construction is relatively long, and the investment is fairly large, there are a lot of cases about small and medium enterprises, especially in developed countries, which failed to implement information technology. To take the lessons from western enterprises and to achieve the expected benefits from the investment of information technology, formulating rational information strategies for SMEs is necessary. Moreover, the pursuit of rapid growth for SMEs is one of the important goals. Therefore, in this paper we explore to study of the relationship between information technology strategy and the growth of SMEs.In the first chapter this paper describes the background and significance to study of business growth from the perspective of information strategy, and elaborates the purpose of this research. Theory about information strategy and business growth is introduced in the second chapter. Besides, the latest research results about information strategy and business growth of SMEs are summarized respectively, as well as further analysis of the factors restricting the growth of SMEs. Based on these theoretical studies and reviews, the idea from this unique perspective of information strategy to study its effects on the growth of SMEs is put forward. Therefore, in the third chapter, the model about the relationship between information strategy and business growth is built, based on relevant theory. To verify whether the initial model is accepted or not, in the fourth chapter, the relevant scale is designed. In the next step, the questionnaire is used to investigate the manufacturing SMEs in Huainan. By this way, the data is collected, and reliability and validity about the data is analyzed. Finally, the software SPSS20.0is used to describe the relationship among the control variables about business growth of SMEs and information strategy. The fifth chapter, structural equation modeling (SEM) is used to analyze the mechanism of information strategy on business growth of SMEs, namely the path analysis, followed by the evaluation of its results. Then, according to the critical ratio and the modification indices, the initial structure model is corrected and adjusted over and over to obtain reasonable model. Chapter VI summarizes the findings of this paper, and points out the shortcomings of this research.