Abstract:There is significant difference on the effect of implementation of cleaner production among small and medium-sized industrial enterprises. At the same time, the relation between cleaner production and firm performance is not clear. In view of that, the survey of 132 small and medium industrial enterprises in Jiangsu Province is conducted. Meanwhile, according to the research results , cleaner production is divided into green product design and clean production process management, and firm performance is divided into economic performance and environmental performance. This paper explores the relationship among cleaner production and firm performance by the use of multiple regression analysis. The results show that green product design have a significant positive impact on firm performance, the impact of cleaner production process management on economic performance is equally positive, but it did not have a significant impact on the environmental performance of the enterprise. Based on the results above, this paper provides recommendations for cleaner production scheme of small and medium-sized industrial enterprises and the formulation of the government incentive policy.