Industry association networks, innovations, and firm performance in Chinese small and medium-sized enterprises

Peng-hua Qiao, Xiao-feng Ju and Hung-Gay Fung

China Economic Review, 2014, vol. 29, issue C, 213-228

Abstract: This study uses panel data analysis to examine the effects of membership in industry association networks on innovation and firm performance in Chinese small and medium-sized enterprises (SMEs) listed on the Shenzhen Stock Exchange Small and Medium-size Enterprises Board from 2007 to 2011. There are several interesting findings. First, research and development (R&D) and technology staff have a positive and significant effect on innovation at SMEs. Second, participation in industry association networks (defined as comprising business association networks and technology association networks) can improve firm innovation at Chinese SMEs. Third, innovation is found to have a positive effect on firm performance at SMEs. Finally, membership in industry association networks can improve firm efficiency and increase non-operating income but at the expense of higher management costs at SMEs. Our study has important policy implications for policymakers and SMEs in China.

Keywords: Firm performance; Industry association networks; Innovations; Small and medium-sized enterprises (search for similar items in EconPapers)
JEL-codes: G28 G31 G32 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:29:y:2014:i:c:p:213-228

DOI: 10.1016/j.chieco.2014.04.011

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