Impact of industrial linkages on firm performance in development zones
AbstractThis 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 33127.
Date of creation: Mar 2011
Date of revision:
Publication status: Published in The Chinese Economy 2.44(2011): pp. 78-105
Industrial linkages; Development zones;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- O20 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-16 (All new papers)
- NEP-CSE-2011-09-16 (Economics of Strategic Management)
- NEP-SBM-2011-09-16 (Small Business Management)
- NEP-TRA-2011-09-16 (Transition Economics)
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