Research on the Relationship among Government Regulations, Strategy Preference and Manufacturing Performance

Fa-Xin Cheng, Wei Wang

School of Business Administration, Jiangsu University, Zhenjiang, China.

DOI: 10.4236/jssm.2012.51005                

Abstract

Based on the environment-strategy-performance paradigm, the paper constructs a theoretical framework on the rela- tionship among government regulations, manufacturing strategy and performance. Using structural equation model and a sample of 135 SME of Jiangsu Province, this paper examines the relationship among government regulations, manu- facturing strategy and performance, the result of which shows that government regulations have a significant positive effect on cost, quality and innovation; cost, quality and innovation influence financial performance significantly and positively; quality and innovation have a significant positive effect on non-financial performance, whereas cost has not. Finally, suggestions for SME-development promoting policy and manufacturing strategy selection are putting forward.

Keywords

SME; Government Regulation; Manufacturing Strategy; Performance

Conflicts of Interest

The authors declare no conflicts of interest.

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