Innovation Capacity Of SMEs In Henan To Assess And Enhance Strategy

With the development of the era, competitive environment which enterprises face with haschanged. Unforeseen factors in the market make the market competition more brutal. The currentdevelopment model of SMEs is mainly dependent on the traditional factors of production such as capital,land, machinery and equipment and other components of hard power, but with the development of theeconomic and the growing scarcity of this resource, the model of development increasingly is challenged,and due to lack of material resources, SMEs themselves are difficult to compete with large corporations.Life of SMEs in China are generally low, much lower than Western countries, development of small andmedium enterprises in Henan Province is more to be desired. In particular, with the advent of economicglobalization, information technology era, today’s complex business environment, if an enterprise want tokeep survival and develop better, it has to actively improve their overall competitiveness, better to adaptand respond to the challenge. The key to change the mode of development of enterprises, is not only tomeet the needs of basic material conditions, but also develop and enhance the conditions of their intangibleinnovation, corporate culture, management, social responsibility, social prestige and so on. The authorbelieves that relying only Factory scale, capital and other resources in seeking to develop hard power erahas passed,"soft" and "hard" and Shi era has arrived, SMEs should seize the opportunities of the times, fulluse of their flexible and other characteristics, accelerate the construction of the core elements of its ownsoft power, and form the core competitiveness. The theory of soft power Proposed SMEs a clear direction.According to Harvard professor Joseph S. Nye (1990) theory of soft power, material factors (money,machinery, land, etc.) are the hard power elements of the intangible elements of soft power factor. Porter, Michael E.(2000) considered the senior elements of soft power elements, enhance corporate innovation isan essential element. Material elements accumulated to a certain extent, soft power factor and growthenvironment has become a key factor to promote enterprise innovation ability. The purpose of this study isto guide SMEs in Henan Province, to change the traditional concept of the development of enterprisemanagement, enterprise "soft power" of innovation perspective, explore new paths of enterprisemanagement. This is also the subject of participation in the process, to understand the "soft power" basicelements of SMEs in Western countries, according to Henan SMEs "soft power" elements of developmentproposed for further analysis. The author summarizes the theory seriously soft power, on the basis of theresearch with practice, after careful analysis, organize, summarize the theory of soft power, soft power toidentify existing SME problems in Henan Province, mainly in Henan Province of soft power and the abilityto innovate does not match the current situation, its soft power elements of empirical judgments growthenvironment, and then make appropriate elements of the structure and elements to create appropriateenvironment to enhance their ability to innovate, promote business by leaps and bounds, as Henan smallsoft power to promote innovation and the development of enterprises to provide a workable and effectivenew ideas and new strategies. In this paper, related to the theory of soft power, combined with thedevelopment of regional enterprises in Henan Province, the soft power elements are further divided,according to certain elements of soft power model status for SMEs around the city, Henan Province,evaluation, and analysis of different The contribution of the soft power elements of the enterpriseinnovation and structural effects of soft power elements, to explore the role of the mechanism of soft powerelements of reality and feasibility analysis Henan promote innovative SMEs through soft power elements,choose the best The mechanism to achieve the soft power elements of the program to maximize theeffectiveness of play. This study fit the characteristics of the times and trends in the development of SMEs. This hasimportant implications for the deepening of enterprise management theory, thickness, enhance innovationcapacity of SMEs. Finally, the perspective of soft power elements put forward some suggestions for thedevelopment of small and medium enterprises in Henan Province, specifically including governmentdepartments to provide enterprises with a good nurturing soft power of great social environment, includinginstitutional environment, culture and policy support, etc. departments to improve their own organizationalstructure, cultivate soft power to reach consensus on the elements of corporate leadership in the formationof internal staff to build soft power of positive atmosphere within the enterprise soft power to establishsocial supervision departments and personnel training and promotion, regular business workers, especiallybusiness leaders personal soft power, soft power operation of the importance of social responsibility andsustainable development of enterprises, such as the significance of advocacy, guidance, to enableenterprises to keep all personnel to build enthusiasm soft power, soft power elements so training to becomea long-term strategic development plan.It’s safe to say that there are many place during the study, but we believe that research direction isright, I believe that if further study, then, not only enterprise development mode can has a transformation,but also the transformation of economic growth mode will have some revelation.