Title: R&D, advertising and firm technical efficiency: an empirical analysis on Chinese and Japanese household appliance industry

Authors: Feng He, Rong Chen

Addresses: School of Economics and Management, University of Science and Technology Beijing, Xueyuan Road, Haidian District, Beijing 100083, China. ' School of Economics and Management, Tsinghua University, Haidian District, Beijing 100084, China

Abstract: This study measures and compares Chinese and Japanese production efficiency and profitability efficiency of listed companies in household appliance industry by SFA from 2001 through 2005. It also tests the linkage between production efficiency and profitability efficiency in the industry and estimates the impacts of such factors as R&D, advertising and promotion. These estimations indicate that both R&D and advertising and promotion pose significant and positive impacts on firm|s production and profitability efficiency in the long-run. Moreover, R&D expenditure impacts firm|s efficiencies more effectively than advertising and promotion in our sample.

Keywords: R&D; research and development; advertising; firm efficiency; technical efficiency; household appliances; China; Japan; domestic appliances; production efficiency; profitability; listed companies; stochastic frontier analysis; SFA; linkages; market promotions; services technology; services management.

DOI: 10.1504/IJSTM.2011.041980

International Journal of Services Technology and Management, 2011 Vol.16 No.1, pp.107 - 122

Published online: 21 Feb 2015 *

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