Firm-specific knowledge and technical efficiency of watch and clock manufacturing firms in China

Zai Bin Wu, Godfrey Yeung, Wai Kwong Mok, Zhaozhou Han

Research output: Journal article publicationJournal articleAcademic researchpeer-review

15 Citations (Scopus)

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 languageEnglish
Pages (from-to)317-332
Number of pages16
JournalInternational Journal of Production Economics
Volume107
Issue number2
DOIs
Publication statusPublished - 1 Jun 2007

Keywords

  • Capital intensity
  • China
  • Firm-specific knowledge
  • Product differentiation
  • Research and development
  • Technical efficiency

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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