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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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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.

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Authors and Affiliations

  1. Dept. of Marketing and International Business, School of Business, Lingnan College, Tuen Mun, Hong Kong

    Clement Kong Wing Chow

  2. Dept. of Decision Sciences & Managerial Economics, Faculty of Business Administration, Chinese University of Hong Kong, Shatin, NT, Hong Kong

    Michael Ka Yiu Fung

Authors
  1. Clement Kong Wing Chow
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  2. Michael Ka Yiu Fung
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Chow, C.K.W., Fung, M.K.Y. Firm Size and Performance of Manufacturing Enterprises in P.R. China: The Case of Shanghai's Manufacturing Industries. Small Business Economics 9, 287–298 (1997). https://doi.org/10.1023/A:1017934928430

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  • DOI: https://doi.org/10.1023/A:1017934928430

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