Measuring the technological leadership of international joint ventures in a transforming economy
Document Type
Journal article
Source Publication
Journal of Business Research
Publication Date
6-1-1997
Volume
39
Issue
2
First Page
147
Last Page
157
Abstract
Technical efficiency is introduced as an objective criterion for measuring the performance of international joint ventures in China. By using the technique of stochastic production frontier, we compute the estimates of time-invariant and time-varying technical efficiency in four major manufacturing industries in Shanghai. We show that international joint ventures are in general more technically efficient than domestic firms. In addition, the efficiency gaps between the international joint ventures and domestic firms in the industries of textile, machinery and equipment, and electronics and telecommunications equipment are widening in our sample period although the industrial reforms and active technology policies have improved the productivity of domestic firms. However, in the clothing industry, the technical efficiency of domestic firms, especially state-owned firms, is comparable to the efficiency leader, international joint ventures. These results are useful to assess the competitive advantages of international joint ventures in the People's Republic of China.
DOI
10.1016/S0148-2963(96)00169-5
Print ISSN
01482963
E-ISSN
18737978
Publisher Statement
Copyright © 1997 Elsevier Science Inc
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Chow, C. K.-W., & Fung, M. K.-Y. (1997). Measuring the technological leadership of international joint ventures in a transforming economy. Journal of Business Research, 39(2), 147-157. doi: 10.1016/S0148-2963(96)00169-5