Zhejiang Province, Manufacturing Smes In Transition Mode And Its Ability To Structure Research

The global practice of business change management had gone through the upsurge of 'reengineering' and 'regrouping' ever since 1980's. And now it has been turned into a mainstream of 'transformation' from the last few years around 1990's. However, most of domestic studies on business transformation have been focusing on the reorientation of state-owned large business group and listed enterprises in the economic transition context and only a few works can be found on SMEs in China. Because there are many differences between the large-scaled enterprises and their small counterparts on mechanisms, organization factors and market characteristics, current theories cannot be used directly on SMEs. Thus, a need for particular research on SMEs' transformation is obvious, especially on the reasons, patterns, resources and capability factors. And that's the initiative for this research to study business transformation of the manufacture SMEs in Zhejiang Province.Firstly, this research will begin with conducting general description on manufacture SMEs in Zhejiang province to find the main patterns of business transformation. Then a two-dimension matrix is. constructed to categorize three patterns of business transformation, with one dimension by business model and the other one business sector. After that, the characteristics of transformation are discussed on reasons and critical success factors to generalize relationship between the transformation pattern and its corresponding capability factors. And further supporting evidences are distilled through case analyzing in each pattern respectively. For the differences between the three patterns naturally call for the differences in capability factors and their structures, this research continued to verify the specific factors and structures for each pattern. In addition, a case of Zhe Bao Electircal Co. is demonstrated to explore a dynamic view of a transformation model, which shows that the change agency play an important role in putting capability factors together to interact logically in the process of "business-organization-capability", thus pushing the transformation forward.For business transformation has its practicalities in the business development of current manufacure SMEs in Zhejiang Province, this research provides with managers and entrepreneurs some specific suggestions mainly on choice of transformation pattern and capability nuturing, in hope of making itself a meaningful work.