Share This Article:

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

Abstract Full-Text HTML Download Download as PDF (Size:202KB) PP. 37-43
DOI: 10.4236/jssm.2012.51005    5,021 Downloads   7,810 Views   Citations


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.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

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.


[1] B. Zhang, “Research on SMEs Transformation and Upgrading Strategies,” Science and Technology Management Research, Vol. 12, 2010, pp. 147-149.
[2] P. Li and C. H. Wang, “The Nonlinear Study of Public S$T Subsides to Business Innovation: A Threshold Regression Analysis Based on Panel Data in 2001-2008,” China Soft Science, Vol. 8, 2010, pp. 138-147.
[3] W. Skinner, “Manufacturing: Missing Link in Corporate Strategy,” Harvard Business Review, Vol. 47, No. 3, 1969, pp. 136-145.
[4] K. Amoako-Gyampah and Moses Acquaah, “Manufacturing Strategy, Competitive Strategy and Firm Performance: An Empirical Study in a Developing Economy Environment,” International Journal of Production Economics, Vol. 111, No. 2, 2008, pp. 575-592. doi:10.1016/j.ijpe.2007.02.030
[5] X. L. Man and X. L. Pei, “Research on Relationship between Competitive Priorities and Manufacturing Performance Based on Modular Customization,” Operations Research and Management Science, Vol. 19, No. 1, 2010, pp. 162-169.
[6] G. S. Dangayacha and S. G. Deshmukhb, “An Exploratory Study of Manufacturing Strategy Practices of Machinery Manufacturing Companies in India,” International Journal of Management Science, Vol. 34, No. 3, 2006, pp. 254-273.
[7] G. Li and L. Y. Sun, “Manufacturing Strategy: Literature Survey and Research Prospect for Chinese Problem,” Scientific Management, Vol. 29, No. 3, 2008, pp. 131-158.
[8] A. Masood and D. Davis, “Operations Strategy, Environmental Uncertainty and Performance: A Path Analytic Model of Industries in Developing Countries,” Omega, Vol. 28, No. 2, 2000, pp. 155-173. doi:10.1016/S0305-0483(99)00041-9
[9] F. X. Cheng, Y. P. Zhao and S. W. Li, “Analyzing a Questionnaire Research of the Competitive Factors in Chinese Manufacturing Companies,” Industrial Engineer- ing and Management, Vol. 5, 2007, pp. 101-104.
[10] M. Porter, “Competitive Strategy,” Huaxia Publishing Press, Beijing, 1997.
[11] P. Cheng, “The Government of a Strategy to Promote Innovation Evaluation,” Science of Science and Technology Management, Vol. 31, No. 11, 2010, pp. 19-26.
[12] X. L. Liu and J. H. Ji, “An Empirical Study of Competitive Priorities and Manufacturing Performance,” Journal of Shanghai Jiaotong University, Vol. 41, No. 7, 2007, pp. 1049-1057.
[13] J. Henrik, “Empirical Analysis of Manufacturing Strategy Implementation,” Production Economic, Vol. 113, No. 1, 2008, pp. 370-382. doi:10.1016/j.ijpe.2007.09.005
[14] P. Li and M. Liang, “Empirical Study on the Relationship of Competitive Priorities in Small and Medium Manufacturing Enterprises,” Chinese Journal of Management Science, Vol. 4, No. 14, 2006, pp. 622-626.
[15] P. Ward, R. Duray, G. Leong and C. Sum, “Business Environment, Operations Strategy and Performance: An Empirical Study of Singapore Manufacturers,” Journal of Operations Management, Vol. 13, No. 2, 1995, pp. 99- 115. doi:10.1016/0272-6963(95)00021-J
[16] P. Theodorou and G. Florou, “Manufacturing Strategies and Financial Performance—The Effect of Advanced Information Technology: CAD/CAM Systems,” Omega, Vol. 36, No. 1, 2008, pp. 107-121. doi:10.1016/
[17] B. Fynes and C. Voss, “A Path Analytic Model of Quality Practices, Quality Performance and Business Performance,” Production and Operations Management, Vol. 10, No. 4, 2001, pp. 494-513. doi:10.1111/j.1937-5956.2001.tb00089.x
[18] S. K. Ren, “Game Analysis on the Technological Choices and Government System Innovation,” Statistics and Decision, Vol. 13, 2010, pp. 167-170.
[19] M. L. Wu, “Structural Equation Model—The Operating and Application of AMOS,” Chongqing University Press, Chongqing, 2009.
[20] F. X. Cheng and Y. J. Huang, “Research on the Relationship between Competitive Priorities and Performance Based on OEM mode,” Journal of Management, Vol. 9, No. 1, 2011, p. 45.
[21] H. C. Lin and H. X. Guan, “The Analysis of Status and Countermeasures on SME Financing,” Quantitative and Technical Economics, Vol. 2, 2002, pp. 107-110.
[22] H. S. Fang, “The Most Potential Economic Growth Pole in Jiangsu Yangtze River Delta,” 2010.

comments powered by Disqus

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.