Competitive Strategy, Technical Efficiency and Firm Performance：Empirical Evidence from China’s Manufacturing Listed Companies
REN Juan1,2, CHEN Qi1
1.Department of Economy and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 210016, China；2.Shanghai Publishing and Printing College, shanghai 200093,China
Abstract：
Based on the panel data of 283 China’s manufacturing listed companies from 1999 to 2006, Factor Analysis is used to identify the firm two kinds of competitive strategies of low-cost and differentiation. The relationship among competitive strategy, technical efficiency and firm performance is examined. The results indicate that low-cost strategy has a significantly positive effect on technical efficiency and firm performance respectively. Differentiation strategy is positive with firm performance but significantly negative with technical efficiency. Technical efficiency has a significantly positive effect on firm performance; so it is verified that low-cost strategy improves the firm performance through the intermediation of technical efficiency while uncertain for differentiation strategy. The conclusion of this paper can provide some references for firm’s strategic position, technical efficiency and performance improvement.
2012 
