Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/18398
Title: Employee motivation, external orientation and the technical efficiency of foreign-financed firms in china : a stochastic frontier analysis
Authors: Mok, V 
Yeung, G
Issue Date: 2005
Publisher: John Wiley & Sons
Source: Managerial and decision economics, 2005, v. 26, no. 3, p. 175-190 How to cite?
Journal: Managerial and decision economics 
Abstract: By using a stochastic frontier model, we have identified several firm-specific attributes as determinants of technical efficiency in foreign-financed manufacturing firms in southern China. The empirical results suggest a strong association between efficiency and employee motivation, which includes the use of bonus incentives and flexibility in employment policy. In terms of the external orientation behavior of firms, the findings do not support the export/ efficiency relationship. Sample firms with a high degree of export-orientedness were less efficient, possibly due to the high transaction costs in China of exportation. As for the effects of expatriate input on production, our empirical evidence revealed that firms with a relatively high expatriate ratio performed less efficiently than others did. These two findings may have significant implications for the marketing strategies and management (including the localization) of human resources of foreign-financed firms in China.
URI: http://hdl.handle.net/10397/18398
ISSN: 0143-6570
EISSN: 1099-1468
DOI: 10.1002/mde.1203
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