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Firm Size and Performance of Manufacturing Enterprises in P.R. China: The Case of Shanghai's Manufacturing Industries

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  • Wing, Clement Chow Kong
  • Fung, Michael Ka-yiu

Abstract

This paper studies the relationship between firm size and technical efficiency of manufacturing enterprises in Shanghai's manufacturing sector from 1989 to 1992. Although our empirical results show that technical efficiency is increasing in the firm size, the group of the smallest enterprises (0-99 workers) have very high technical efficiency. The group of enterprises with size of 100-249.9 workers have the lowest technical efficiency while the largest size (1000 workers or above) group usually have the highest technical efficiency. Finally, technical efficiency computed from net industrial product has large upward biases compared with that computed from gross industrial product. Copyright 1997 by Kluwer Academic Publishers

Suggested Citation

  • Wing, Clement Chow Kong & Fung, Michael Ka-yiu, 1997. "Firm Size and Performance of Manufacturing Enterprises in P.R. China: The Case of Shanghai's Manufacturing Industries," Small Business Economics, Springer, vol. 9(3), pages 287-298, June.
    • Handle: RePEc:kap:sbusec:v:9:y:1997:i:3:p:287-98
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    Cited by:

    1. Stavros Kourtzidis & Nickolaos G. Tzeremes, 2019. "Investigating the determinants of firm performance," European Journal of Management and Business Economics, Emerald Group Publishing Limited, vol. 29(1), pages 3-22, June.
    2. Marc Cowling & George Tanewski, 2019. "On the productive efficiency of Australian businesses: firm size and age class effects," Small Business Economics, Springer, vol. 53(3), pages 739-752, October.
    3. Ali, Jabir, 2016. "Performance of small and medium-sized food and agribusiness enterprises: evidence from Indian firms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), September.
    4. Le, Viet & Vu, Xuan-Binh (Benjamin) & Nghiem, Son, 2018. "Technical efficiency of small and medium manufacturing firms in Vietnam: A stochastic meta-frontier analysis," Economic Analysis and Policy, Elsevier, vol. 59(C), pages 84-91.
    5. Neba Bhalla & Rakesh Kumar Sharma & Inderjit Kaur, 2022. "Effect of Tax Knowledge and Technological Shift in Tax System on Business Performance: A PLS-SEM Analysis," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    6. Qiao Liang & Rongrong Bai & Zhi Jin & Linlin Fu, 2023. "Big and strong or small and beautiful: Effects of organization size on the performance of farmer cooperatives in China," Agribusiness, John Wiley & Sons, Ltd., vol. 39(1), pages 196-213, January.

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