This year, the monitoring range for the selection of “Rankings of top 100 competitiveness enterprises in the wire and cable field of the year” will expand to the wire and cable raw materials (non-metal) enterprises. That is, “Rankings of top 10 competitiveness enterprises in wire and cable raw materials (non-metal) industry of China” will be added this year.
In order to have a basic understanding of Chinese wire and cable enterprises’ situation about participating in the global market, Wire and Cable Information Research Institute made a questionnaire survey named “2017 Chinese wire and cable enterprises go-out and competitiveness” among the wire and cable enterprises of some provinces and cities in 2017. This year’s research project of the competitiveness report is
First of all, compared with the enterprises who never export their product, export enterprises have obvious efficiency advantage. No matter in per capita income in sales, per capita amount of tax or total factor productivity, the advantage of export enterprises are quite obvious.
In the second place, the export decision made by the domestic wire and cable enterprises exist obvious “exports from choice effect”, what it means that, to a large extent , only those enterprises who have higher production efficiency will be able to enter the global market. This conclusion implies that if our wire and cable enterprises want to go into the global market, we must try out best to improve their ability of independent innovation, perfect the governance structure of enterprises’ legal person and amend external development environment for enterprises. On this basis, the enterprises’ efficiency of production and operation will be continuously improved and the ability of entering the international market will be enhanced.
In the third place, the research also proves that export will bring the enterprises remarkable learning effect. In other words, through participation in the global market, the export enterprises will be able to further improve their efficiency for production and business operation, especially to significantly enhance the enterprises’ total factor productivity. This conclusion has great theoretical value. On one hand, it explains the reasons why Hengtong, Baosheng and ZTT have the opportunity to become the most competitive leading enterprises among the areas of global wire and cable. On the other hand, it shows that with the go-out strategy, the wire and cable enterprises gain advanced knowledge, technology and management philosophy from abroad, which ultimately drives the domestic wire and cable enterprises for continuously improvement in the efficiency of production and operation, and then got the enterprises growing at a good clip.
In the forth place, enterprises’ corporate governance structure has significant influence on their efficiency of production and operation. As far as the sample enterprises covered in our database are concerned, when the largest shareholder hold the stock in 51%-80%, the enterprise will have the most efficiency of production and operation. Meanwhile, in a certain range, when the Chief Executive Office is selected by dominant shareholders and he isn’t their immediate family, efficiency of the enterprise will be greater. However, it should be pointed out that due to the constraints of the index, the empirical analysis in the research of the relationship between the company’s governance structure and the enterprise’s efficiency of production and operation is just revelatory.
In the fifth place, China’s wire and cable enterprises are mainly concentrated in east China, mainly in Jiangsu and Zhejiang province, with the number of enterprises more than half of the total number of the industry; the proportion of wire and cable enterprises in the central and southern regions reaches 27%, mainly in Guangdong province; the number of enterprises in the north China, northeast China, southwest and northwest areas respectively account for 10%, 6%, 4% and 2%. Meanwhile, the production efficiency of wire and cable enterprises has obvious regional variations. Compared with other provinces and cities, in the entirely same circumstances, the wire and cable enterprises in east China region have the greater production efficiency. The reason why the production efficiency of the wire and cable enterprises in east China region clearly leads in the whole country is worthy of deep-going investigation.
Last but not least, thank you, our craft brothers, for your concern and support for the selection in the past five years. Thanks again.
Accreditation Committee of "the top 10 competitiveness enterprises in China's wire and cable industry"
Sep. 2018