Author(s)

Fa-Xin Cheng, Wei Wang

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

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.

SME; Government Regulation; Manufacturing Strategy; Performance

F. Cheng and W. Wang, "Research on the Relationship among Government Regulations, Strategy Preference and Manufacturing Performance," Journal of Service Science and Management, Vol. 5 No. 1, 2012, pp. 37-43. doi: 10.4236/jssm.2012.51005.