Liu Chenling
ABSTRACT
This study examined the implementation of cost reduction strategies and their impact on the performance of manufacturing-related small and medium-sized enterprises (SMEs) in Changzhou City, Jiangsu Province, China. Employing a mixed-methods approach, the study combined quantitative and qualitative methods to provide a comprehensive analysis. A descriptive-correlational research design was used to explore the relationship between strategy implementation and performance. The qualitative component, analyzed through thematic analysis, identified key challenges hindering the implementation of cost strategies. Data were collected from 320 participants—comprising 30% managers and 70% employees—selected using stratified random sampling from SMEs with established university partnerships. A structured questionnaire, validated by business management experts and informed by prior literature, served as the primary instrument for data collection. Data analysis utilized frequency count, percentage, weighted mean, t-tests, ANOVA, and Pearson correlation, with ethical protocols strictly observed throughout the process. Findings revealed a great extent of implementation of cost strategies in production and financial areas, but only a moderate extent in inventory and risk management. There were significant differences in assessments based on age, position, and length of service, and a statistically significant positive correlation between strategy implementation and enterprise performance. However, the study also uncovered persistent challenges, including outdated management practices, insufficient R&D investment, quality control risks, market instability, and regulatory constraints. These findings provide practical insights for SME managers and policymakers aiming to strengthen cost control mechanisms and enhance competitiveness in China’s manufacturing sector.
Keywords: Cost control strategies, SME performance, mixed methods, manufacturing enterprises, Jiangsu Province, China
https://doi.org/10.57180/vxjx9767