The software industry in China is growing at a speed close to or more than 30% per year, and this industry has played a very significant role in China’s national economy. However, with the rapid development of information technology, the software enterprise’s competitiveness elements and corresponding changes have taken place. Medium and small software companies rely on the advantage of cheap labor to obtain original has gradually lost, at the same time because of its in the lack of financial resources, manpower and technology, compared with the large software enterprises, R&D and technology innovation activity often receive limits, thus restricting the development of its own.Software companies with a short product life cycle and the technology updates faster. How to cultivate and mining enterprise core competitiveness, and keep the relative competitive advantage in a dynamic environment is a common problem in medium and small software enterprises. Therefore, this paper uses the small and medium-sized software enterprises as the research object to study how it uses application integration and innovative ways to effectively enhance their competitive advantage. The research of this paper will make a positive theoretical and practical significance for the medium and small software enterprises to seek competitive advantage.This paper will analyze the relevant literatures at first to summarize the relevant theory about competitive advantages. On this basis, Comprehensive analysis of the current development of small and medium software enterprises, summarized the development of small and medium software enterprises characteristics. After the analysis of relevant literatures, Combed the seven elements to affect the formation of small and medium software enterprises competitive advantages, including the cost leadership, strategic alliance and cooperation, continuous innovation, differentiation, integration of resources, the establishment of learning organization and the protection of intellectual property rights. Finally, combining case to correlation analysis of these factors, continuous innovation ability is the crucial factor for the formation of small and medium-sized software enterprise competitive advantage. Then, through the interaction between enterprises integrated innovation and competitive advantage model, analyze the medium and small software enterprises competitive advantage ascension path. In order to provide the necessary theoretical support for the medium and small software enterprise competitive advantage. |