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Does public behavior and research development matters for economic growth in SMEs: Evidence from Chinese listed firms

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Listed:
  • Zhou, Wuhao
  • Xu, Yuanlu
  • Zhang, Li
  • Lin, Huifang

Abstract

Previous studies have largely ignored the role of small and medium-sized businesses (SMEs) and instead concentrated on corporate social responsibility (CSR) in large corporations. In the developing Chinese economy, promoting responsible behavior​ among manufacturing SMEs has taken on greater significance. Using mixed-level probit regression and qualitative comparative analysis, this study examines data from Chinese SMEs between 2010 and 2018. Results show that worker productivity has a positive impact on how public spending and R&D spending are related. The study reveals a wide range of relationships between various SME categories. Results show that public spending and R&D significantly contribute to the economic expansion of Chinese SMEs. Pre-crisis financial flexibility, which has little impact on R&D employment flexibility during a crisis, also undermines the positive relationship between increased R&D flexibility and post-crisis business performance. These observations clarify how SMEs participate in international R&D and highlight opportunities and management challenges.

Suggested Citation

  • Zhou, Wuhao & Xu, Yuanlu & Zhang, Li & Lin, Huifang, 2023. "Does public behavior and research development matters for economic growth in SMEs: Evidence from Chinese listed firms," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 107-119.
    • Handle: RePEc:eee:ecanpo:v:79:y:2023:i:c:p:107-119
    DOI: 10.1016/j.eap.2023.06.005
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