Volume 30, Issue 1, 2021
DOI: 10.24205/03276716.2020.2080
Factors Driving the Sustainable Development of the Chinese SMEs: The Resource-Based Theory Perspective
Abstract
In the global risky environment for the survival of small and medium-sized enterprises (SMEs), how to improve SME’s performance and survival period has become an important topic. This paper refreshes the Chinese SMEs by big data examination of key factors mentioned in literatures. Based on the samples from 1998 to 2007, we find that family-owned enterprises, research and development (R&D) intensity, and income subsidy have a significant and positive correlation with the SME’s survival duration. On the other hand, wasted resources from sales and liability activities, and equity participation by state-owned capital are negatively correlated with the SME’s performance. Therefore, instead of state-owned investment, we suggest that the government might encourage the Chinese SME’s development by providing subsidies and facilitating R&D input.
Keywords
small and medium-sized enterprises (SMEs); family firms; resource-based theory; sustainable entrepreneurship