SME Growth External Environment,Internal Governance and Enterprise Performance under the Backgrounds of Transition Economy

摘要

The purpose of the paper is to find which is more important between the external environment and internal governance to the SME growth under the backgrounds of transition economy,or both are important. Through sending out 800 questionnaires to the SMEs of 23 provinces & cities in China last year,the article got the external environment data and internal governance data of 300 SMEs from 14 industries in 2005 finally. The multi-way factors analysis of variance (MANOVA) is used to test that whether the external environment and internal governance affects significantly the performance of SME (ROE is used in the paper). The individual analysis results tell us that policy environment and law environment these two factors are significant to explain the performance of SME,while the economy environment is not significant (these three factors are the main factors of external environment);among the first shareholder proportion,the set-up of two positions and set-up of specialized committee these three internal governance factors,only the set-up of specialized committee factor is stable in significance level but not significant. However,we find that the committee situation factor is also significant when we put the significant external environment factors including interaction variables and significant internal governance factors involving the interaction variables into the same model. The results mean SMEs should establish the good governance structure and mechanism although the external environment may affect the enterprise performance. The implications for SMEs and government are offered in the paper.