The relationship between non-pecuniary outbound openness and profit in large firms

The literature on the development of American industrial research suggests that during the twentieth century large firms “dominated” industrial research, and reaped the majority of the benefits from such activity. This paper utilizes new data to analyze both the relationship between firm size and research employment and the impact of research activity on firm growth and survival during 1921–1946. The results suggest that large firms were no more research-intensive than were small firms during the 1921–1946 period. Research activity significantly enhanced the probability of firms' survival among the ranks of the 200 largest manufacturing firms during 1921–1946. Research employment also improved the growth performance of both large and small firms during 1933–1946.

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Employment Growth of Small, Medium, and Large Firms: Evidence from Zambia

Research in Applied Economics ◽

10.5296/rae.v11i3.15079 ◽

2019 ◽

Vol 11 (3) ◽

pp. 1

Author(s):

Yordanos Gebremeskel

Keyword(s):

World Bank ◽

Employment Growth ◽

Strong Relationship ◽

Full Time ◽

Large Firms ◽

The World Bank ◽

Manufacturing Sectors ◽

World Bank Enterprise Survey ◽

Enterprise Survey ◽

The Relationship

We have used the World Bank Enterprise Survey data and examined the relationship between size, age and employment growth of 720 small, medium and large firms from four cities in Zambia. These firms have between 1-2010 full-time employees and operate in services, retail, and manufacturing sectors. The employment growth is defined as a difference in logarithm of full-time employees between two years and divided by the age of the firm. Our estimation shows that there is a strong relationship between employment growth, size, and age of firms. We find that younger firms but not smaller size are more important in creating employment growth.

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Firm Size and the Relationship Between Wage Dispersion and Firm Performance

Journal of Income Distribution ◽

10.25071/1874-6322.30579 ◽

2010 ◽

Author(s):

Homero Zambrano

Keyword(s):

Theoretical Model ◽

Firm Performance ◽

Firm Size ◽

Small Firms ◽

Wage Structure ◽

Wage Dispersion ◽

Large Firms ◽

Empirical Results ◽

Simple Theoretical Model ◽

The Relationship

A simple theoretical model explains the divergent empirical results concerning the effect of wage dispersion on firm performance. First, causality in the relationship is clarified. Then, through the model, it is shown that firm performance is non-monotonic with respect to wage dispersion. Likewise, it is shown that large firms are more likely to benefit from a dispersed wage structure than small firms.

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Creditworthiness and access to finance of SMEs in Malaysia: do linkages with large firms matter?

Journal of Small Business and Enterprise Development ◽

10.1108/jsbed-03-2019-0075 ◽

2020 ◽

Vol 27 (2) ◽

pp. 197-217 ◽

Cited By ~ 2

Author(s):

Shaista Wasiuzzaman ◽

Nabila Nurdin ◽

Aznur Hajar Abdullah ◽

Gowrie Vinayan

Keyword(s):

Small And Medium Enterprises ◽

Manufacturing Sector ◽

Group Analysis ◽

Large Firms ◽

Kuala Lumpur ◽

Access To Finance ◽

Content Type ◽

Significant Difference ◽

Medium Enterprises ◽

The Relationship

PurposeThis study investigates the influence of inter-firm linkages between small and medium enterprises (SMEs) and large firms on the relationship between an SME's creditworthiness and its access to finance.Design/methodology/approachSurvey questionnaire was distributed to 456 SMEs in the manufacturing sector in the Selangor and Federal Territory of Kuala Lumpur regions and a total of 145 useable responses were gathered. Investigation into the possible differences in the effect of creditworthiness – and its dimensions – on access to finance for SMEs with and without linkages are examined using Partial Least Squares-Multi Group Analysis (PLS-MGA).FindingsIt is found that the relationship between creditworthiness and access to finance is significant for both SMEs with and without links to large firms. However, no significant difference is found in the effect of creditworthiness on access to finance for both types of SME. Further analysis on the five different dimensions of creditworthiness shows statistically significant differences between SMEs with links and those without for the dimensions of collateral and condition. This implies that alliances formed between SMEs and large firms do not have much of an influence on the overall creditworthiness but do influence the collateral and condition of the SME.Originality/valueThis study contributes to the understanding of the effects of interfirm linkages on SME creditworthiness and access to finance. To the authors' knowledge no such study has been conducted on links between SMEs and large firms, especially in a developing country such as Malaysia.

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Moderating role of top management support in electronic procurement usage of Jordanian firms

Management Science Letters ◽

10.5267/j.msl.2020.11.027 ◽

2021 ◽

pp. 1121-1132 ◽

Cited By ~ 1

Author(s):

Ahmad Marei ◽

Luay Daoud ◽

Marhaiza Ibrahim ◽

Sameer M. Al-Jabaly

Keyword(s):

Market Access ◽

Top Management ◽

Management Support ◽

Large Firms ◽

Factors Affecting ◽

Top Management Support ◽

Electronic Procurement ◽

The Relationship ◽

Moderating Role

The use of e-procurement aids organisations in reducing business costs, broadening their market access and simplifying purchasing processes. However, in Jordan, only 27.6% of firms utilise e-procurement systems. Hence, the usage of e-procurement systems by Jordanian firms is still in its infancy. In this work, the technology, organisation and environment (TOE) factors affecting the use of e-procurement systems by large firms in Jordan were investigated. Previous studies have reported inconsistent findings with regard to the antecedent factors that may affect e-procurement usage. Therefore, this work aimed to determine the factors related to e-procurement usage and whether or not top management support moderates the relationship between TOE factors and e-procurement usage. Results revealed that all TOE factors used in this study influenced the e-procurement usage of the firms. Moreover, the moderating role of top management support was found to be positively related to relative advantages and organisational readiness and negatively related to complexity.

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Entry, Variable Markups, and Business Cycles

Finance and Economics Discussion Series ◽

10.17016/feds.2021.077 ◽

2021 ◽

Vol 2021 (077) ◽

pp. 1-67

Author(s):

William L. Gamber ◽

Keyword(s):

Adjustment Costs ◽

Firm Dynamics ◽

Large Firms ◽

The Great Recession ◽

Elasticity Of Demand ◽

Market Shares ◽

Input Use ◽

Variable Markups ◽

The Business Cycle ◽

The Relationship

The creation of new businesses declines in recessions. In this paper, I study the effects of pro-cyclical business formation on aggregate employment in a general equilibrium model of firm dynamics. The key features of the model are that the elasticity of demand faced by firms falls with their market share and that adjustment costs slow the reallocation of employment between firms. In response to a decline in entry, incumbent firms' market shares increase, their elasticity of demand falls, and they increase their markups and reduce employment. To quantify the model, I study the relationship between variable input use and revenue in panel data on large firms. Viewed through the lens of my model, my estimates imply that for large firms, the within-firm elasticity of the markup to relative sales is 25 percent. I use the calibrated model to study shocks to entry, finding that a fall in entry can lead to a significant contraction in employment. A shock to entry that replicates the decline in the number of businesses during the Great Recession generates a prolonged 2.5 percent fall in employment in the model. Finally, I show that the declining correlation between revenue and variable input use over the past 30 years implies that the effect of entry on the business cycle has become stronger over time.

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Profitability and Financial Leverage: Evidence from a Quasi-Natural Experiment

Management Science ◽

10.1287/mnsc.2021.4235 ◽

2021 ◽

Author(s):

Davidson Heath ◽

Giorgo Sertsios

Keyword(s):

Capital Structure ◽

Market Power ◽

Treatment Period ◽

Small Firms ◽

Natural Experiment ◽

Adjustment Costs ◽

Large Firms ◽

Financial Leverage ◽

Trade Off ◽

The Relationship

The relationship between profitability and leverage is controversial in the capital structure literature. We revisit this relation in light of a novel quasi-natural experiment that increases market power for a subset of firms. We find that treated firms increase their profitability throughout the treatment period. However, they only transiently reduce financial leverage, gradually reverting to their preshock level. Firms respond differently according to size with large firms gradually adjusting their leverage toward a new target and small firms reducing it. The patterns are broadly consistent with dynamic trade-off models with both fixed and variable adjustment costs. This paper was accepted by Gustavo Manso, finance.

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Collaborative Integration in the Canadian Pharmaceutical Industry

Environment and Planning A Economy and Space ◽

10.1068/a251815 ◽

1993 ◽

Vol 25 (12) ◽

pp. 1815-1838 ◽

Cited By ~ 10

Author(s):

M J Anderson

Keyword(s):

Pharmaceutical Industry ◽

Empirical Studies ◽

University Research ◽

Large Firms ◽

Theoretical Frameworks ◽

Corporate World ◽

Empirical Context ◽

The Relationship

Over the course of the 1980s, companies attempted to develop new organisational strategies to balance competition with collaboration. Although a variety of theoretical frameworks acknowledged this development there have been very few empirical studies in which the nature and extent of this collaborative integration and the implications for industries in the 1990s have been examined. In this paper, the Canadian pharmaceutical industry is used as the empirical context for an examination of collaboration. The author focuses on the relationship between small and large firms, biotechnology-based companies, and university research and argues that these collaborative linkages need to be more firmly developed in our theoretical discussions if we are to make sense of the corporate world in the 1990s.

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Employer Size and Labor Turnover: The Role of Pensions

ILR Review ◽

10.1177/001979399604900408 ◽

1996 ◽

Vol 49 (4) ◽

pp. 707-728 ◽

Cited By ~ 20

Author(s):

William E. Even ◽

David A. MacPherson

Keyword(s):

Firm Size ◽

Small Firms ◽

Pension Plans ◽

Labor Turnover ◽

Large Firms ◽

Worker Turnover ◽

Worker Characteristics ◽

Pension Coverage ◽

The Relationship

The well-documented lower labor turnover in large firms than in smaller firms has been cited as evidence that large firms pay workers above their opportunity wage. This study investigates whether the relationship between firm size and turnover can instead be accounted for in part by size-related differences in the availability, portability, or generosity of pension plans. Analyzing extensive data for the years 1973–93, the authors find that pension coverage was associated with a greater reduction in worker turnover in large firms than in small firms. They also find that when appropriate controls for worker characteristics are employed, there is virtually no association between firm size and labor turnover for workers not covered by a pension.

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Tax Rates in Small and Large Firms

American Journal of Small Business ◽

10.1177/104225878701200204 ◽

1987 ◽

Vol 12 (2) ◽

pp. 41-52 ◽

Cited By ~ 3

Author(s):

Davinder Singh ◽

Ronald P. Wilder ◽

Kok Poh Chan

Keyword(s):

Firm Size ◽

Small Firms ◽

Manufacturing Industry ◽

Size Group ◽

Tax Rates ◽

Large Firms ◽

Corporate Tax ◽

Industry Group ◽

Administrative Expenses ◽

The Relationship

This study examines the relationship between firm size and tax rates. Contrary to other recent studies, these findings demonstrate that corporations in the smallest size group pay the highest effective corporate tax rates. 1 It is suggested that the higher tax rates of small firms can be explained in terms of selling, general and administrative expenses. Selling, general and administrative expenses as a ratio to sales are more than 50% higher for small corporations than for the largest firms in the non-durable manufacturing industry group.

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