Transformations  in
Business & Economics

INFLUENCING FACTORS AND MOTIVATIONS FOR TRANSFORMATION AND UPGRADING OF MANUFACTURING: BASED ON QUESTIONNAIRE AT ZHEJIANG, CHINA
Bingqiang Li, Chengbin Wang

ABSTRACT.Based on a questionnaire of 986 manufacturing enterprises in Zhejiang Province, the motivations and factors influencing transformation and upgrading were analyzed. In the survey, the analysis of motivations showed that Zhejiang was in the preliminary stage. The most affected factors were the regional and domestic, then, the internal, and, finally, the international environment. The results showed that the global financial crisis, RMB rapid appreciation, and the weakening international market were the major international influencing factors. The increasing raw material cost and the insufficient domestic demand were the major domestic influencing factors. The excessively overburdened tax, the comparatively deteriorated competitive environment, the comparatively high commercial cost, and the overburdened industrial capacity were the major regional influencing factors. The lack of senior talents and the bottom locked-in value chain were the major internal influencing factors. As for these factors, the domestic and regional environment had a negative impact on the SMEs and positive impact on the high-tech enterprises.

KEYWORDS: the manufacturing enterprise, transformation and upgrading, motivation for transformation, China.

JEL classification: C40, C51, E69.