Competitive Strategies, Innovation, and Firm Performance in Small and Medium-Sized Enterprises of Manufacturing in China

Abstract

Development in technology and globalization have forced manufacturing industries to upgrade on methods and material capital of production. The traditional production in China's SME manufacturing industries is faces great competition and cost pressure when facing the global market competition. Innovation allows manufacturing industries to establish good competitive strategies, which make the enterprise performance long-term development. Using competitive strategies and innovation can improve the quality of life and bring professional and economic benefits to individuals and enterprises. The research will generate a conceptual framework to focus on the influence of competitive strategies and innovation on the performance, to enhance and inspire the better performance of SMEs. The framework will provide a template for the development, planning, and operation management of Chinese SME managers and offer a practical tool for diagnosing SME performance.