Competitive Strategy,innovation Investment And Financial Performance

China has a large number of small and medium-sized enterprises and a wide distribution of industries,and their development has attracted much attention.With the increasing competition among enterprises,obtaining and maintaining competitive advantage has gradually become the main task of the strategic development of every small and medium-sized enterprises.From the national macro level,it is proposed in the outline of National Innovation-driven Development Strategy that China will enter the ranks of innovative countries in 2020 and take the first step of the strategic goal of building a world scientific and technological power.From the perspective of objective reality,nowadays,technology-and knowledge-intensive enterprises are becoming the mainstream,and more and more small and medium-sized enterprises begin to shift their attention to the field of innovation,hoping to enhance the core competitiveness of enterprises through innovation investment.and then improve the financial performance of enterprises.Therefore,the research on the relationship between competitive strategy,innovation investment and financial performance has become the research goal of this paper.Based on the above environmental analysis and thinking,this paper,based on small and medium-sized enterprises,takes the choice and analysis of their development strategies as the premise,explores the influence mechanism of innovation investment on financial performance,and reveals the intermediary role of innovation investment.this is of great significance to improve the financial level of enterprises and give full play to the main role of innovation.Therefore,this paper takes the competitive strategy of enterprises as the starting point of the analysis,reviews the relevant literature and theoretical background,selects high-tech enterprises on the small and medium-sized enterprise board as the research object,based on the financial data of sample enterprises from 2016 to 2018,constructs the conceptual model of competitive strategy,innovation investment and financial performance,and uses empirical methods to analyze the interaction among the three.Strive to draw conclusions that are more in line with the development of small and medium-sized enterprises.The conclusion of this paper shows that for small and medium-sized board high-tech enterprises,either differentiation strategy or low-cost strategy will induce enterprises to invest in innovation,and different competitive strategies have different effects on corporate financial performance.there are also differences in the impact of different competitive strategies on corporate financial performance.Specifically,both differentiation strategy and low-cost strategy have a positive impact on innovation investment;low-cost strategy can significantly improve the financial performance of small and medium-sized enterprises,while differentiation strategy has no obvious effect on the financial performance of small and medium-sized enterprises;innovation investment plays an obvious intermediary role between differentiation strategy and financial performance,but the intermediary role between low-cost strategy and financial performance is not significant.At the end of the paper,this paper puts forward relevant suggestions on how to give full play to the competitive strategic advantages and improve the financial performance of small and medium-sized board high-tech enterprises under different strategic backgrounds.