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Quality-oriented growth: a new trend for Chinese firms

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  • Tang Li
  • Pingtian Wang
  • Xingyan Liu
  • Hong Cheng

Abstract

Based on data from the China Employer-Employee Survey (CEES), this study analyses the actual effect of quality-driven growth on firms’ performances in the economic transition of recent years. The results show positive and significant effects between the firms’ performance and quality-oriented growth, which is defined as a strategy that supports the spirit of greater entrepreneurial innovation, the advancement of input quality, and corporate governance improvement. Using a quality-driven growth mode, firms can effectively relieve the adverse effect of downward macroeconomic growth pressure on performance. This study proposes that China’s macroeconomic policy should shift from demand-oriented management to supply-oriented management, with a particular focus on quality development strategy. Moreover, firms should establish a quality-driven development strategy, facilitating a spirit of entrepreneurial innovation, advancing input quality, and improving corporate governance. This strategy will increase the firm’s performance, and effectively relieve the macroeconomic downward pressure.Abbreviations: CEES: China Employer-Employee Survey, TFP: Total factor productivity

Suggested Citation

  • Tang Li & Pingtian Wang & Xingyan Liu & Hong Cheng, 2017. "Quality-oriented growth: a new trend for Chinese firms," China Economic Journal, Taylor & Francis Journals, vol. 10(1), pages 34-46, January.
  • Handle: RePEc:taf:rcejxx:v:10:y:2017:i:1:p:34-46
    DOI: 10.1080/17538963.2016.1274006
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    Cited by:

    1. Chua, Kia-Chong & Henderson, Claire & Grey, Barbara & Holland, Michael & Sevdalis, Nick, 2023. "Evaluating quality improvement at scale: A pilot study on routine reporting for executive board governance in a UK National Health Service organisation," Evaluation and Program Planning, Elsevier, vol. 97(C).

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