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Industrial Policy and Firm Performance: A Perspective Based on Intangible Resources

Year: 2024

Type: article

Abstract: Based on the Resource-Based View (RBV) and Public Choice Theory, this study examines the impact of an industrial policy instrument—the identification of “Time-Honored Brand” (THB) in China—on the performance of businesses. Leveraging the unique context of the Ministry of Commerce’s 2006 re-identification of THBs, this study ingeniously constructs a control group for industrial policy and demonstrates the policy’s effect through data from 974 THB firms. The findings reveal that the identification as a “THB” has a positive impact on the performance of large firms, while negative impact on small enterprises. The study reveals the different effects of the intangible resource given policy among different subjects and confirms the presence of public choice issues in policy implementation.

Source: Research in Economics and Management

DOI: 10.22158/rem.v9n4p92

Authors: Guangfei He, Lei Xue

Institutions: Tsinghua Shenzhen International Graduate School, Tsinghua University

Language: English

Topic: Political Influence and Corporate Strategies

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4403714123

FWCI:

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