Tang Li, Pingtian Wang, Xingyan Liu & Hong Cheng
Abstract
Based on data from the China Employer-Employee Survey (CEES), this study analyses the actual effect of quality-driven growth on firms’ performances in the economic transition of recent years. The results show positive and significant effects between the firms’ performance and quality-oriented growth, which is defined as a strategy that supports the spirit of greater entrepreneurial innovation, the advancement of input quality, and corporate governance improvement. Using a quality-driven growth mode, firms can effectively relieve the adverse effect of downward macroeconomic growth pressure on performance. This study proposes that China’s macroeconomic policy should shift from demand-oriented management to supply-oriented management, with a particular focus on quality development strategy. Moreover, firms should establish a quality-driven development strategy, facilitating a spirit of entrepreneurial innovation, advancing input quality, and improving corporate governance. This strategy will increase the firm’s performance, and effectively relieve the macroeconomic downward pressure.
Abbreviations: CEES: China Employer-Employee Survey, TFP: Total factor productivity
KEYWORDS: Quality-oriented growth, performance, a spirit of entrepreneurial innovation, input quality, corporate governance
JEL CLASSIFICATION: O12, D21, M13
Full text: http://www.tandfonline.com/doi/full/10.1080/17538963.2016.1274006