Abstract
This paper tests whether firm-specific knowledge in terms of capital intensity, product differentiation, and research and development contribute to an improvement in firm efficiency. Based on a representative dataset from the watch and clock industry in southern China, the technical efficiency is estimated using a non-parametric data envelopment analysis approach. Through a Tobit model, we investigate whether a firm's specific knowledge influences its efficiency. The results suggest that capital intensity and research and development have a positive effect on the efficiency of the sample firms, and identify their roles of firm-specific knowledge in explaining inter-firm variation in efficiency. However, sample firms with high level of product differentiation were found to have no obvious advantages in efficiency performance.
| Original language | English |
|---|---|
| Pages (from-to) | 317-332 |
| Number of pages | 16 |
| Journal | International Journal of Production Economics |
| Volume | 107 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 1 Jun 2007 |
Keywords
- Capital intensity
- China
- Firm-specific knowledge
- Product differentiation
- Research and development
- Technical efficiency
ASJC Scopus subject areas
- General Business,Management and Accounting
- Economics and Econometrics
- Management Science and Operations Research
- Industrial and Manufacturing Engineering