The relationship between workers’ participation in management and firm performance is open todebate in economic theory. There has not yet been any empirical study on this subject regarding China. Theauthor uses panel data of large and medium-sized industrial enterprises in China’s Henan province, froma survey conducted in field research (1995-1998), to study how participatory management affects firmperformance. The author found that participatory management has large positive effects on state-ownedenterprises’ productivity.
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