Flexibility-efficiency tradeoff and performance implications among Chinese SOEs
AbstractThis paper examines performance implications of the flexibility-efficiency tradeoff in the turbulent environment. We test the relationship between resource utilization and firm performance among the Chinese state-owned enterprises (SOEs) during China's economic transformation. The study finds that (1) overall efficiency enhances performance; (2) different measures of efficiency all exhibit curvilinear relationship with performance; and (3) differences exist between high efficiency and low efficiency subgroups of firms. The results reveal that efficiency as well as flexibility has a positive impact on firm performance only within a certain range. Beyond a certain point, the cost of maintaining flexibility overwhelms the benefit, causing performance to decline.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Business Research.
Volume (Year): 63 (2010)
Issue (Month): 4 (April)
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Web page: http://www.elsevier.com/locate/jbusres
China Flexibility-efficiency tradeoff Resource-based view Dynamic capabilities State-owned enterprises;
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