Manufacturing firms’ performance and technology commitment – the case of the electronics industry in China

This study deals with one strategic issue for manufacturing firms operating in Asian emerging markets – technology commitment or investment. It compares two different approaches adopted by international manufacturing firms in China, one of the major emerging markets in the world. Analyzing the data from the 100 largest manufacturing firms (in terms of market share) competing in one of China’s manufacturing industries, i.e. electronics, this paper shows an interesting positive relationship between technology investment and firm performance in China’s manufacturing industries. This paper concludes with a discussion on the implications of the findings.