Older is wiser? Evidence from a semiparametric study of competitive power and experience in China’s non-governmental enterprises

• Main Authors: HE, Yifeng, SU, Liangjun
• Format: text
• Language: Chinese
• Published: Institutional Knowledge at Singapore Management University 2008
• Subjects: Competitive Power; Experience; Semi-parametric Method; Econometrics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2038
• Institution: Singapore Management University

This paper employs semiparametric models to study the relationship between competitive power and experience. First, we study in turns the relationships between the experience and the nine categories of competitive power, namely, scale, social benefits, operation power, operation risk, profitability, technologic power, human capital value, export power and development potential. We find that with the increase of experience,the current asset turnover, productivity and development potential are basically decreasing; profitability and employment offered do not vary much; while the rest indices show inverse U relationships with the experience. We also construct a composite competitive power index with the method of factor analysis and find it has an "M type" instead of an "inverse U type" relationship with the experience.