Skip to main content

When Government Policies Improve Firm Performance

  • Chapter
  • First Online:
Value in Business

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

  • 977 Accesses

Abstract

Based on the theoretical studies in Chap. 3, this chapter, which is mainly based on (Forrest et al., to appear, Market competition and economic effects of government policies), investigates conditions under which government policies can be expected to improve the economic performance of firms through their market offers that can be either physical products, services, or informational goods.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 119.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 159.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 159.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Adner, R. (2006). Match your innovation strategy to your innovation ecosystem. Harvard Business Review, 84(4), 98–107.

    Google Scholar 

  • Adner, R., & Kapoor, R. (2010). Value creation in innovation ecosystems: How the structure of technological interdependence affects firm performance in new technological generations. Strategic Management Journal, 31(3), 306–333.

    Article  Google Scholar 

  • Andreoni, A., & Chang, H. J. (2019). The political economy of industrial policy. Structural Change and Economic Dynamics, 48(March), 136–150.

    Article  Google Scholar 

  • Banerjee, A. V. (1992). A simple model of herd behavior. The Quarterly Journal of Economics, 107(3), 797–817.

    Article  Google Scholar 

  • Bernheim, B. D., & Whinston, M. D. (1990). Multimarket contact and collusive behavior. RAND Journal of Economics, 21(1), 1–26.

    Article  Google Scholar 

  • Blankenburg, H. D., Eriksson, K., & Johanson, J. (1999). Creating value through mutual commitment to business network relationships. Strategic Management Journal, 20(5), 467–486.

    Article  Google Scholar 

  • Borrás, S., & Edquist, C. (2013). The choice of innovation policy instruments. Technological Forecasting and Social Change, 80(8), 1513–1522.

    Article  Google Scholar 

  • Brülhart, M., & Mathys, N. A. (2008). Sectoral agglomeration economies in a panel of European regions. Regional Science & Urban Economics, 38(4), 348–362.

    Article  Google Scholar 

  • Burtch, G. (2011). Herding behavior as a network externality. Proceedings of the international conference on information systems, ICIS 2011, Shanghai, China, December 4–7, 2011.

    Google Scholar 

  • Card, D., & Krueger, A. B. (1994). Minimum wages and employment: A case study of the fast-food industry in New Jersey and Pennsylvania. American Economic Review, 84(4), 772–793.

    Google Scholar 

  • Ciccone, A., & Hall, R. E. (1996). Productivity and the density of economic activity. American Economic Review, 86, 54–70.

    Google Scholar 

  • Cúrdia, V., & Woodford, M. (2016). Credit frictions and optimal monetary policy. Journal of Monetary Economics, 84(December), 30–65.

    Article  Google Scholar 

  • Endut, N., Morley, J., & Tien, P. L. (2018). The changing transmission mechanism of US monetary policy. Empirical Economics, 54, 959–987.

    Article  Google Scholar 

  • Forrest, J. Y. L. (2018). General systems theory: Foundation, intuition and applications in business decision making. Springer.

    Book  Google Scholar 

  • Forrest, J. Y. L., Duan, X. J., Zhao, C. L., & Xu, L. D. (2013). Systems science: Methodological approaches. CRC Press, an imprint of Taylor and Francis.

    Google Scholar 

  • Forrest, J. Y.-L., Liu, J., Guo, H., Liu, Y., Phipps, T. M., Yang, Y. J., & Cao, Y. R.. (n.d.). (to appear). Market competition and economic effects of government policies. Submitted for publication.

    Google Scholar 

  • Forrest, J. Y.-L., Liu, Y., Golden, J., Sissoko, Y., & Qiaoxing Li, Q. X. (2020). A reformulated value chain framework useful for different kinds of markets. Journal of Business and Economics Studies, 24(1), 33–53.

    Google Scholar 

  • Forrest, J. Y.-L., Nicholls, N., Schimmel, K., & Liu, S. F. (2020). Managerial decision making: A holistic approach. Springer.

    Book  Google Scholar 

  • Forrest J. Y. L, & Nightingale, J. (2017). Successfully transition into the era of transient competitive advantages. Proceedings of 2017 NABET Annual Conference, October 26–27, 2017, State College, PA (pp. 57–79).

    Google Scholar 

  • Forrest, J. Y.-L., Tucker, R., Lin, C.C., & Mondal, S. (2018). Impacts of manufacturing firms’ culture, structure and leadership on innovation: A systemic approach. Proceedings of the 41st annual meeting of northeastern association of business, Economics and Technology, State College, PA.

    Google Scholar 

  • Forrest, J. Y. L., Tucker, R., Lin, C. C., & Mondal, S. (2019). The innovativeness of manufacturing firms from the angles of organizational culture, structure and leadership. Journal of Business, Economics and Technology, 22(1), 41–66.

    Google Scholar 

  • Frank, A. G. (1978). Multilateral merchandise trade imbalances and uneven economic development. In Dependent accumulation and underdevelopment. Palgrave Macmillan.

    Chapter  Google Scholar 

  • Fratzscher, M., Lo Duca, M., & Straub, R. (2016). ECB unconventional monetary policy: Market impact and international spillovers. IMF Economic Review, 64, 36–74.

    Article  Google Scholar 

  • Fultz, D., Long, R. R., Owens, G. V., Bohan, W., Kaylor, R., Weil, J. (1959). Studies of Thermal Convection in a Rotating Cylinder with Some Implications for Large-Scale Atmospheric Motion. Meteorol. Monographs (American Meteorological Society), 21(4).

    Google Scholar 

  • Galaskiewicz, J., & Zaheer, A. (1999). Networks of competitive advantage. In S. Andrews & D. Knoke (Eds.), Research in the sociology of organizations (pp. 237–261). JAI Press.

    Google Scholar 

  • Government of Japan. (2015). https://www8.cao.go.jp/cstp/kihonkeikaku/5basicplan_en.pdf. Accessed on April 16, 2019.

  • Gulati, R., Nohria, N., & Zaheer, A. (2000). Strategic networks. Strategic Management Journal, 21(3), 203–215.

    Article  Google Scholar 

  • Hall, W., & Pesenti, J. (2017). Growing the artificial intelligence industry in the UK. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/652097/Growing_the_artificial_intelligence_industry_in_the_UK.pdf, Accessed on October 15, 2017.

  • Helsley, R. W. (2004). Economics of agglomeration: Cities, industrial location and regional growth. Journal of Economic Geography, 4(3), 345–349.

    Article  Google Scholar 

  • Higgins, R. C. (1981). Sustainable growth under inflation. Financial Management, 10(4), 36–40.

    Article  Google Scholar 

  • Howlett, M. (2018). Matching policy tools and their targets: Beyond nudges and utility maximisation in policy design. Policy & Politics, 46(1), 101–124.

    Google Scholar 

  • Hoyt, R. E., & Liebenberg, A. P. (2011). The value of enterprise risk management. The Journal of Risk and Insurance, 78(4), 795–822.

    Article  Google Scholar 

  • Jaehrling, K., Johnson, M., Larsen, T. P., Refslund, B., & Grimshaw, D. (2018). Tackling precarious work in public supply chains: A comparison of local government procurement policies in Denmark, Germany and the UK. Work, Employment and Society, 32(3), 546–563.

    Article  Google Scholar 

  • Kirchner, M., & van Wijnbergen, S. (2016). Fiscal deficits, financial fragility, and the effectiveness of government policies. Journal of Monetary Economics, 80(June), 51–68.

    Article  Google Scholar 

  • Kline, M. (1972). Mathematical thought from ancient to modern times. Oxford University Press.

    Google Scholar 

  • Kuhn, T. (1962). The structure of scientific revolutions. University of Chicago Press.

    Google Scholar 

  • Li, T., & Ma, J. H. (2015). Complexity analysis of dual-channel game model with different managers’ business objectives. Communications in Nonlinear Science and Numerical Simulation, 20, 199–208.

    Article  Google Scholar 

  • Lins, K. V. (2003). Equity ownership and firm value in emerging markets. The Journal of Financial and Quantitative Analysis, 38(1), 159–184.

    Article  Google Scholar 

  • Lyson, T. A., & Falk, W. W. (Eds.). (1993). Forgotten places: Uneven development in rural America. Rural America Series. University Press of Kansas.

    Google Scholar 

  • Makhija, A. K., & Spiro, M. (2000). Ownership structure as a determinant of firm value: Evidence from newly privatized czech firms. Financial Review, 35(3), 1–31.

    Article  Google Scholar 

  • Martin, O. (2001). Growth and agglomeration. International Economic Review, 42(4), 947–968.

    Article  Google Scholar 

  • Mazzei, M. J., Ketchen, D. J., Jr., & Shook, C. L. (2017). Understanding strategic entrepreneurship: A “theoretical toolbox” approach. International Entrepreneurship and Management Journal, 13(2), 631–663.

    Article  Google Scholar 

  • McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press.

    Google Scholar 

  • MIIT. (2015). Circular of Ministry of Industry and Information Technology of the People’s Republic of China on Publishing the List of Pilot Demonstration Projects of Intelligent Manufacturing in 2015. http://www.miit.gov.cn/n1146285/n1146352/n3054355/n3057585/n3057589/c3590738/content.html. Accessed on July 21, 2015.

  • MIIT. (2016a). Circular of MIIT and MOF on the Issuance of Development Plan of Intelligent Manufacturing (2016–2020). http://www.miit.gov.cn/n1146285/n1146352/n3054355/n3057585/n3057590/c5406038/content.html. Accessed on December 8, 2016.

  • MIIT. (2016b). Circular of Ministry of Industry and Information Technology of the People’s Republic of China on Publishing the List of Pilot Demonstration Projects of Intelligent Manufacturing in 2016. http://www.miit.gov.cn/n1146285/n1146352/n3054355/n3057585/n3057590/c5032698/content.html. Accessed on July 4, 2016.

  • MIIT. (2017). Circular of Ministry of Industry and Information Technology of the People’s Republic of China on Publishing the List of Pilot Demonstration Projects of Intelligent Manufacturing in 2017. http://www.miit.gov.cn/n1146285/n1146352/n3054355/n3057585/n3057590/c5861997/content.html. Accessed on October 16, 2017.

  • OWH. (2016). The National Artificial Intelligence Research and Development Strategic Plan. https://www.nitrd.gov/PUBS/national_ai_rd_strategic_plan.pdf. Accessed on April 16, 2016.

  • PCAST. (2012). Report to the President on capturing domestic competitive advantage in advanced manufacturing. https://permanent.access.gpo.gov/gpo34116/pcast_amp_steering_committee_report_final_july_17_2012.pdf. accessed on July, 2012.

  • Pike, A., & Tomaney, J. (2009). The state and uneven development: The governance of economic development in England in the post-devolution UK. Cambridge Journal of Regions, Economy and Society, 2(1), 13–34.

    Article  Google Scholar 

  • Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.

    Google Scholar 

  • Rayport, J. F., & Sviokla, J. J. (1995). Exploiting the virtual value chain. Harvard Business Review, 73(6), 75–85.

    Google Scholar 

  • Ridley, M. (2016). The evolution of everything: How new ideas emerge. Harper Perennial.

    Google Scholar 

  • Rostow, W. W. (1960). The stages of economic growth: A non-communist manifesto. Cambridge University Press.

    Google Scholar 

  • Schumpeter, J. A. (1934). The theory of economic development: An inquiry into profits, capital, credit, interest, and the business cycle. Harvard University Press.

    Google Scholar 

  • Shapiro, C., & Varian, H. R. (1999). Information rules: A strategic guide to the network economy. Harvard Business School Press.

    Google Scholar 

  • Smith, A. (1776). The wealth of nations, books I-III, (1986 printing). Penguin Books.

    Google Scholar 

  • Sobel, R. (1999). When giants stumble: Classic business blunders and how to avoid them. Prentice Hall.

    Google Scholar 

  • Stabell, C. B., & Fjeldstad, O. D. (1998). Configuring value for competitive advantage: On chains, shops, and networks. Strategic Management Journal, 19(5), 413–437.

    Article  Google Scholar 

  • State Council of the PRC. (2015). Notice of State Council of the PRC on printing and distributing “Made in China 2025”.http://www.gov.cn/zhengce/content/2015-05/19/content_9784.htm. Accessed on May 8, 2015.

  • State Council of the PRC. (2016). Guidance of State Council of the PRC on Deepening the Integration of Manufacturing Industry and Internet. http://www.gov.cn/zhengce/content/2016-05/20/content_5075099.htm. Accessed on May 20, 2016.

  • Stidham, M., McCaffrey, S., Toman, E., & Shindler, B. (2014). Policy tools to encourage community-level defensible space in the United States: A tale of six communities. Journal of Rural Studies, 35(July), 59–69.

    Article  Google Scholar 

  • Szirmai, A., & Verspagen, B. (2015). Manufacturing and economic growth in developing countries, 1950-2005. Structural Change and Economic Dynamics, 34, 46–59.

    Article  Google Scholar 

  • Wagner, J. (2012). International trade and firm performance: A survey of empirical studies since 2006. Review of World Economics, 148, 235–267.

    Article  Google Scholar 

  • Wen, Y. (2016). The making of an economic superpower: Unlocking China’s secret of rapid industrialization. World Scientific.

    Book  Google Scholar 

  • Yang, C. Y. (2018). Extension innovation method. CRC Press.

    Book  Google Scholar 

  • Ye, G. L., Priem, R. L., & Alshwer, A. A. (2012). Achieving demand-side synergy from strategic diversification: How combining mundane assets can leverage consumer utilities. Organization Science, 23(1), 207–224.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Forrest, J.YL., Liu, Y. (2022). When Government Policies Improve Firm Performance. In: Value in Business. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-82898-1_20

Download citation

Publish with us

Policies and ethics