Hu, Zhining and Zheng, Jianghuai and Wang, Jialing (2011): Impact of industrial linkages on firm performance in development zones. Published in: The Chinese Economy , Vol. 44, No. 2 (March 2011): pp. 78-105.
Download (668kB) | Preview
This article investigates the effect of industrial linkages on firm performance in Chinese development zones, using Jiangsu Province as a case study. An ordered response model based on the dependent variable being ordinal was developed. The empirical results reveal an insignificant relationship between industrial linkages and firm performance. Our interpretation of this finding mainly lies with the global and domestic challenges that have changed the way participating firms operate and organize in the development zones of Jiangsu. When many other economic factors take precedence over industrial linkages in driving superior firm performance, firms feel it less important to get closer to their suppliers or customers, therefore weakening the impact of industrial linkages. Although this article primarily focuses on development zones in Jiangsu Province, the findings and discussion will provide insights for other development zones in China that may be, reviewing their development strategies because most of them have similar development problems.
|Item Type:||MPRA Paper|
|Original Title:||Impact of industrial linkages on firm performance in development zones|
|English Title:||Impact of industrial linkages on firm performance in development zones|
|Keywords:||Industrial linkages; Development zones|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production
O - Economic Development, Technological Change, and Growth > O2 - Development Planning and Policy > O20 - General
|Depositing User:||Jianghuai Zheng|
|Date Deposited:||02. Sep 2011 09:56|
|Last Modified:||11. Feb 2013 17:05|
Acemoglu, D., P. Aghion, C. Lelarge, J. Van Reenen, and F. Zilibotti. 2006. “Technology, Information and the Decentralization of the Firm.” Quarterly Journal of Economics 122, no. 4: 1759–99.
Bekele, G., and R. Jackson. 2006. “Theoretical Perspectives on Industry Clusters.” Working paper. Regional Research Institute, West Virginia University.
Cella, G. 1984. “The Input-Output Measurement of Interindustry Linkages.” Oxford Bulletin of Economics and Statistics 46, no. 1: 73–84.
Cohen, W., and D. Levinthal. 1990. “Absorptive Capacity: A New Perspective on Learning and Innovation.” Administrative Science Quarterly 35: 128–52.
Colombo, M., and L. Grilli. 2005. “Founders’ Human Capital and the Growth of New Technology-Based Firms: A Competence-Based View.” Research Policy 34, no. 6:795–801.
Debaere, P., J.H. Lee, and M. Paik. 2009. “Agglomeration, Backward and Forward Linkages: Evidence from South Korean Investment in China.” Working paper. University of Virginia and University of Texas at Austin.
Dollinger, M., and P. Golden. 1992. “Interorganizational and Collective Strategies in Small Firms: Environmental Effects and Performance.” Journal of Management 18,no. 4: 695–715.
Fujita, M., and J.-F. Thisse. 2002. Economics of Agglomeration: Cities, Industrial Location, and Regional Growth. Cambridge: Cambridge University Press.
Ge, W. 1999. “The Dynamics of Export-Processing Zones.” Working paper. Bucknell University.
Hall, B. 1999. “Innovation and Market Value.” Working paper no. 6984. Cambridge, MA: National Bureau of Economic Research.
Hannan, M., and J. Freeman. 1989. Organizational Ecology. Cambridge, MA: Harvard University Press.
Heij, C., P. de Boer, P. Franses, T. Kloek, and H. van Dijk. 2004. Econometric Methods with Applications in Business and Economics. New York: Oxford University Press.
Hyungrae, J., and J. Lee. 1996. “The Relationship Between an Entrepreneur’s Background and Performance in a New Venture.” Technovation 16, no. 4: 161–71.
Jones, D., P. Kalmi, and N. Mygind. 2003. “Choice of Ownership Structure and Firm Performance: Evidence from Estonia.” BOFIT Discussion Papers 7/2003. Institute for Economies in Transition, Bank of Finland.
Kato, T., and C. Long. 2004. “Executive Compensation, Firm Performance, and Ownership Structure: An Empirical Study of Listed Firms in China.” Working paper. Colgate University.
Krugman, P. 1991. Geography and Trade. Cambridge, MA: MIT Press.
———. 1995. Development, Geography, and Economic Theory. Cambridge, MA: MIT Press.
Krugman, P., and A. Venables. 1996. “Integration, Specialization, and Adjustment.” European Economic Review 40, nos. 3–5: 959–67.
Kundra, A. 2000. The Performance of India’s Export Processing Zones: A Comparison with Chinese Approach. New Delhi: Sage Publication. <<not referenced in text>>
Lee, J. 2009. “Does Size Matter in Firm Performance? Evidence from US Public Firms.” International Journal of the Economics of Business 16, no. 2: 189–203.
Levy, B. 1991. “Transaction Costs, the Size of Firms and Industrial Policy.” Journal of Development Economics 34: 151–78.
Madani, D. 1999. A Review of the Role and Impact of Export Processing Zones. Washington, DC: World Bank.
Marimuthu, M., L. Arokiasamy, and M. Ismail. 2009. “Human Capital Development and Its Impact on Firm Performance: Evidence from Developmental Economics.” Journal of International Social Research 2, no. 8: 265–72.
Marshall, A. 1890. Principles of Economics. London: Macmillan.
Mengistae, T. 2006. “Competition and Entrepreneurs’ Human Capital in Small Business Longevity and Growth.” Journal of Development Studies 42, no. 5: 812–36. march–april 2011 105
Meyer-Stamer, J. 1999. “From Industrial Policy to Regional and Local Location Policy: Experience from Santa Catarina/Brazil.” Bulletin of Latin American Research 18, no. 4: 451–68.
Miller, D. 1991. “Stale in the Saddle: CEO Tenure and the Match Between Organization and Environment.” Management Science 37, no. 1: 34–52.
Park, S.O. 1994. “Industrial Restructuring in the Seoul Metropolitan Region: Major Triggers and Consequences.” Environment and Planning A 26: 527–41.
Parr, J. 1999. “Growth-Pole Strategies in Regional Economic Planning: A Retrospective View. Part 1, Origins and Advocacy.” Urban Studies 36, no. 7: 1195–1215.
Porter, M. 1990. The Competitive Advantages of Nation. Washington, DC: Free Press.
Porter, M., M. Sakakibara, and H. Takeuchi. 2000. Can Japan Compete? New York: Macmillan.
Powell, T. 1992. “Organizational Alignment as Competitive Advantage.” Strategic Management Journal 13, no. 2: 119–34.
Rasiah, R. 1994. “Flexible Production Systems and Local Machine-Tool Subcontracting: Electronics Components Transnationals in Malaysia.” Cambridge Journal of Economics 18: 279–98.
Rong, X. 2004. “Research on China’s Small and Medium-Sized Enterprises’ Cluster Development Model.” Chinese Economy 37, no. 5: 7–18.
Scott, A. 1987. “The Semiconductor Industry in South-East Asia: Organization, Location and the International Division of Labor.” Regional Studies 21, no. 2: 143–60.
Sonis, M., G. Hewings, and J. Guo. 2000. “A New Image of Classical Key Sector Analysis: Minimum Information Decomposition of the Leontief Inverse.” Economic Systems Research 12, no. 3: 401–23.
Van Praag, M. 2003. “Business Survival and Success of Young Small Business Owners.” Small Business Economics 21: 1–17.
Wong, S., and B. Tang. 2005. “Challenges to the Sustainability of ‘Development Zones’: A Case Study of Guangzhou Development District, China.” Cities 22, no. 4: 303–16.
Zhao, Z., and K.H. Zhang. 2007. “China’s Industrial Competitiveness in the World.” Chinese Economy 40, no. 6: 6–23.