IDEAS home Printed from https://ideas.repec.org/a/mes/chinec/v44y2011i2p78-105.html
   My bibliography  Save this article

Impact of Industrial Linkages on Firm Performance in Development Zones

Author

Listed:
  • Zhining Hu
  • Jianghuai Zheng
  • Jialing Wang

Abstract

This 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.

Suggested Citation

  • Zhining Hu & Jianghuai Zheng & Jialing Wang, 2011. "Impact of Industrial Linkages on Firm Performance in Development Zones," Chinese Economy, Taylor & Francis Journals, vol. 44(2), pages 78-105, March.
  • Handle: RePEc:mes:chinec:v:44:y:2011:i:2:p:78-105
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=5WHQ483526847X15
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Derek Jones & Panu Kalmi & Niels Mygind, 2005. "Choice of Ownership Structure and Firm Performance: Evidence from Estonia," Post-Communist Economies, Taylor & Francis Journals, vol. 17(1), pages 83-107.
    2. Danny Miller, 1991. "Stale in the Saddle: CEO Tenure and the Match Between Organization and Environment," Management Science, INFORMS, vol. 37(1), pages 34-52, January.
    3. Hall, B.H., 1999. "Innovation and Market Value," Economics Papers 1999-w3, Economics Group, Nuffield College, University of Oxford.
    4. Jim Lee, 2009. "Does Size Matter in Firm Performance? Evidence from US Public Firms," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 16(2), pages 189-203.
    5. Rasiah, Rajah, 1994. "Flexible Production Systems and Local Machine-Tool Subcontracting: Electronics Components Transnationals in Malaysia," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 18(3), pages 279-298, June.
    6. Michael Sonis & J. D. Hewings & Jiemin Guo, 2000. "A New Image of Classical Key Sector Analysis: Minimum Information Decomposition of the Leontief Inverse," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 401-423.
    7. C. Mirjam van Praag, 2003. "Business Survival and Success of Young Small Business Owners," Small Business Economics, Springer, vol. 21(1), pages 1-17, August.
    8. repec:zbw:bofitp:2003_007 is not listed on IDEAS
    9. Heij, Christiaan & de Boer, Paul & Franses, Philip Hans & Kloek, Teun & van Dijk, Herman K., 2004. "Econometric Methods with Applications in Business and Economics," OUP Catalogue, Oxford University Press, number 9780199268016, Decembrie.
    10. Peter Debaere & Joonhyung Lee & Myungho Paik, 2010. "Agglomeration, backward and forward linkages: evidence from South Korean investment in China," Canadian Journal of Economics, Canadian Economics Association, vol. 43(2), pages 520-546, May.
    11. C. Mirjam van Praag, 2003. "Business Survival and Success of Young Small Business Owners," Tinbergen Institute Discussion Papers 03-050/3, Tinbergen Institute.
    12. Gashawbeza Bekele & Randall Jackson, 2006. "Theoretical Perspectives on Industry Clusters," Working Papers Working Paper 2006-05, Regional Research Institute, West Virginia University.
    13. Taye Mengistae, 2006. "Competition and entrepreneurs' human capital in small business longevity and growth," Journal of Development Studies, Taylor & Francis Journals, vol. 42(5), pages 812-836.
    14. Derek Jones & Panu Kalmi & Niels Mygind, 2005. "Choice of Ownership Structure and Firm Performance: Evidence from Estonia," Post-Communist Economies, Taylor & Francis Journals, vol. 17(1), pages 83-107.
    15. S O Park, 1994. "Industrial Restructuring in the Seoul Metropolitan Region: Major Triggers and Consequences," Environment and Planning A, , vol. 26(4), pages 527-541, April.
    16. Madani, Dorsati, 1999. "A review of the role and impact of export processing zones," Policy Research Working Paper Series 2238, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kenichi Kashiwagi & Erina Iwasaki, 2024. "Industrial linkage, vertical integration and firm performance: evidence from textile and garment industry in Egypt," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(1), pages 803-828, February.
    2. Evans Mwasiaji, 2020. "Quality Imperative Value Addition and the Performance of Medium Scale Manufacturing Enterprises in Kenya," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 8(1), pages 39-46.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marco Cucculelli, 2018. "Firm age and the probability of product innovation. Do CEO tenure and product tenure matter?," Journal of Evolutionary Economics, Springer, vol. 28(1), pages 153-179, January.
    2. Andrea Asoni & Tino Sanandaji, 2016. "Identifying the effect of college education on business and employment survival," Small Business Economics, Springer, vol. 46(2), pages 311-324, February.
    3. Aidis, Ruta & van Praag, Mirjam, 2007. "Illegal entrepreneurship experience: Does it make a difference for business performance and motivation?," Journal of Business Venturing, Elsevier, vol. 22(2), pages 283-310, March.
    4. Erik Stam & Roy Thurik & Peter van der Zwan, 2010. "Entrepreneurial exit in real and imagined markets," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1109-1139, August.
    5. Justo, Rachida & DeTienne, Dawn R. & Sieger, Philipp, 2015. "Failure or voluntary exit? Reassessing the female underperformance hypothesis," Journal of Business Venturing, Elsevier, vol. 30(6), pages 775-792.
    6. Francis Kipkogei & Ignace H. Kabano & Belle Fille Murorunkwere & Nzabanita Joseph, 2021. "Business success prediction in Rwanda: a comparison of tree-based models and logistic regression classifiers," SN Business & Economics, Springer, vol. 1(8), pages 1-19, August.
    7. K. Poehlmann & R. Helm & O. Mauroner & J. Auburger, 2021. "Corporate spin-offs’ success factors: management lessons from a comparative empirical analysis with research-based spin-offs," Review of Managerial Science, Springer, vol. 15(6), pages 1767-1796, August.
    8. Enrico Santarelli & Hien Tran, 2013. "The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam," Small Business Economics, Springer, vol. 40(2), pages 435-458, February.
    9. Marco Caliendo & Alexander S. Kritikos & Daniel Rodríguez & Claudia Stier, 2023. "Self-efficacy and entrepreneurial performance of start-ups," Small Business Economics, Springer, vol. 61(3), pages 1027-1051, October.
    10. Marco Caliendo & Alexander S. Kritikos & Claudia Stier, 2023. "The influence of start-up motivation on entrepreneurial performance," Small Business Economics, Springer, vol. 61(3), pages 869-889, October.
    11. Fredriksen, Lars & Wennberg, Karl & Balachandran, Chanchal, 2015. "Mobility and Entrepreneurship: Evaluating the scope of knowledge-based theories of entrepreneurship," Ratio Working Papers 266, The Ratio Institute.
    12. Dorothea Schäfer & Oleksandr Talavera, 2006. "Small-Scale Business Survival and Inheritance: Evidence from Germany," Discussion Papers of DIW Berlin 636, DIW Berlin, German Institute for Economic Research.
    13. Sebastián Aparicio & Andrés Ramírez Hassan & Diego Fernando Gómez Sánchez, 2013. "Elección de ocupaciones que generen empleo usando modelos de elección discreta: Medellín Área Metropolitana 2009," Estudios Gerenciales, Universidad Icesi, December.
    14. Bernard Kwamena Cobbina Essel & Faizal Adams & Kwadwo Amankwah, 2019. "Effect of entrepreneur, firm, and institutional characteristics on small-scale firm performance in Ghana," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-20, December.
    15. Weerachart T. Kilenthong & Kittipong Rueanthip, 2018. "Entrepreneurship and family businesses in Thailand," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(1), pages 77-93, May.
    16. Judith Banda-Guzman & Alejandra Lopez-Salazar, 2014. "Success Factors in Pepper Greenhouses - Case Study: Queretaro, Mexico," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(3), pages 96-107, May.
    17. Richard A. Hunt & Mathew L. A. Hayward, 2018. "Value Creation Through Employer Loans: Evidence of Informal Lending to Employees at Small, Labor-Intensive Firms," Organization Science, INFORMS, vol. 29(2), pages 284-303, April.
    18. Bryan T. Stinchfield & Reed E. Nelson & Matthew S. Wood, 2013. "Learning from Levi–Strauss’ Legacy: Art, Craft, Engineering, Bricolage, and Brokerage in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 37(4), pages 889-921, July.
    19. Gottschalk, Sandra & Greene, Francis J. & Höwer, Daniel & Müller, Bettina, 2014. "If you don't succeed, should you try again? The role of entrepreneurial experience in venture survival," ZEW Discussion Papers 14-009, ZEW - Leibniz Centre for European Economic Research.
    20. Hans Löfsten, 2016. "New technology-based firms and their survival: The importance of business networks, and entrepreneurial business behaviour and competition," Local Economy, London South Bank University, vol. 31(3), pages 393-409, May.

    More about this item

    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, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:chinec:v:44:y:2011:i:2:p:78-105. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MCES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.