scholarly journals COMPETITIVE DYNAMICS AND EARLY MOVER ADVANTAGES UNDER ECONOMIC RECESSIONS

2017 ◽  
Vol 57 (1) ◽  
pp. 22-36 ◽  
Author(s):  
ROBERTO VASSOLO ◽  
JAVIER GARCÍA-SÁNCHEZ ◽  
LUIZ MESQUITA
Keyword(s):  
Firm Size ◽  
Competitive Dynamics ◽  
Global Markets ◽  
Formal Modeling ◽  
Supply Side ◽  
Large Firms ◽  
Relative Value ◽  
Isolating Mechanisms ◽  
Economic Recessions ◽  
Firm Profitability

ABSTRACT In light of the recent macroeconomic instability in global markets, we examine the evolution of competitive dynamics and firm profitability when industries are subject to recessions. Although ordinary intuition leads most to view recessions as harmful, we highlight conditions under which they enhance the relative value of industry-level supply-side isolating mechanisms, thereby affording early movers significant and sustainable profit advantages vis-à-vis laggards. We observe that the distribution of firm size within the industry switches from a bi-modal distribution (i.e., one dominated by both small and large firms) to a right-skewed one (i.e., dominated mostly by large firms) in these contexts, thereby signaling the rise of important opportunities in the form of less rivalrous competitive contexts for survivors of recessions. We derive our results from formal modeling and multiple simulation runs.

The impact of formality on firm profitability in Bolivia: an heterogeneous assessment

2012 ◽  
pp. 53-74
Author(s):  
Darwin Ugarte Ontiveros
Keyword(s):  
Empirical Literature ◽  
Large Firms ◽  
Marginal Effects ◽  
Heterogeneous Effects ◽  
Firm Profitability ◽  
The Impact ◽  
Formal Status

Recent evidence suggests that formality improves micro-firms profits in Bolivia. This gain is only for firms with 2 to 5 workers, while smaller and larger firms would lose out by formalizing (McKenzie and Sakho, 2010). However, as much of the empirical literature on this topic, the estimations are based on strong assumptions about unobservables. If the returns to formality vary among firms and these variations influence selection into formality, traditional estimators are biased (Heckman and Vytlacil, 2007). In this paper we considerthese elements to estimate the heterogeneous effects of formality on firm profits in Bolivia. We find remarkable heterogeneity in the returns to formality, from -3% to 6%. The group of firms with positive marginal effects from formality corresponds to those which are most likely to register. We also characterize the firms that likely benefit from having a formal status. These would correspond to large firms which work at big scales.

PENGARUH UMUR, UKURAN, DAN PROFITABILITAS PERUSAHAAN TERHADAP PERATAAN LABA

2017 ◽  
Vol 11 (1) ◽  
pp. 77
Author(s):  
Rut Puspita Sari ◽  
Putriana Kristanti
Keyword(s):  
Logistic Regression ◽  
Firm Size ◽  
Technical Analysis ◽  
Income Smoothing ◽  
Firm Age ◽  
Purposive Sampling ◽  
Firm Profitability ◽  
Size Firm

Income smoothing is one of the ways used by management to reduce fluctuations in earnings obtainedin order to profit in accordance with the desired target. This study aimed to test: the effect of firm age,firm size, and firm profitability on income smoothing on companies listed in the Indonesia StockExchange. The sample is determined based on purposive sampling, a total of 265 manufacturingcompanies during the 2010-2014 period. Technical analysis of the data using logistic regression. Theresults showed that the age of the firm, firm size, and profitability influence the practice of incomesmoothing.Keywords: Firm Age, Firm Size, Firm Profitability, Income Smoothing

The impact of firm size on competitive intelligence activities

foresight ◽  
2020 ◽  
Vol 22 (5/6) ◽  
pp. 563-577
Author(s):  
Jonathan Calof
Keyword(s):  
Firm Size ◽  
Design Methodology ◽  
Competitive Intelligence ◽  
Full Time ◽  
Business Analytics ◽  
Large Firms ◽  
Process Variables ◽  
Content Type ◽  
Study Results ◽  
The Impact

Purpose Given the importance of competitive intelligence (CI) to the economic performance of firms, understanding whether CI practice is impacted by firm size or by their awareness of CI maybe important when creating programs designed to improve firms’ CI performance. This paper aims to address this by examining the extent to which the CI practices of small and medium-sized enterprises (SMEs) and large firms differed using a sample of firms with knowledge/awareness of CI. Design/methodology/approach A survey was developed that included 10 CI organization questions and 67 CI process questions. The survey was sent to a sample with awareness/knowledge of CI – strategic and CI professionals (SCIP) members and individuals who had attended SCIP events T-tests were then used to compare the SME’s and large firms’ responses to the 10 CI organization and 67 CI process questions. Findings For firms with CI awareness/knowledge, the study results suggest that size has very little relationship with CI practice. Of the 10 CI organization variables, only two were significantly different between the SME’s and the large firms. Large firms had more full-time CI staff and were more likely to have a formal intelligence unit compared to the SME’s. Of the 67 CI process variables, only four were significantly different between the SME’s and the large firms. Large firms made more use of company intranet for distributing CI findings use business analytics software and use commercial databases for information than SME’s while the SME’s used social media, in particular Facebook more than large firms, in their competitive intelligence activities. Originality/value This study uses a sample frame of firms with CI awareness/knowledge in examining differences between SME’s and large firms CI practices.

Why do large firms pay higher wages? Evidence from matched worker‐firm data

2005 ◽  
Vol 26 (7/8) ◽  
pp. 705-723 ◽  
Author(s):  
Thierry Lallemand ◽  
Robert Plasman ◽  
François Rycx
Keyword(s):  
Private Sector ◽  
Firm Size ◽  
Wage Premium ◽  
Individual Characteristics ◽  
Substantial Part ◽  
Large Firms ◽  
Skilled Workers ◽  
Data Set ◽  
Content Type ◽  
Firm Data

PurposeThis paper analyses the magnitude and sources of the firm‐size wage premium in the Belgian private sector.Design/methodology/approachUsing a unique matched employer‐employee data set, our empirical strategy is based on the estimation of a standard Mincer wage equation. We regress individual gross hourly wages (including bonuses) on the log of firm‐size and insert step by step control variables in order to test the validity of various theoretical explanations.FindingsResults show the existence of a significant and positive firm‐size wage premium, even when controlling for many individual characteristics and working conditions. A substantial part of this wage premium derives from the sectoral affiliation of the firms. It is also partly due to the higher productivity and stability of the workforce in large firms. Yet, findings do not support the hypothesis that large firms match high skilled workers together. Finally, results indicate that the elasticity between wages and firm‐size is significantly larger for white‐collar workers and comparable in the manufacturing and the service sectors.Research limitation/implicationsUnfortunately, we are not able to control for the potential non‐random sorting process of workers across firms of different sizes.Originality/valueThis paper is one of the few to test the empirical validity of recent hypotheses (e.g. productivity, job stability and matching of high skilled workers). It is also the first to analyse the firm‐size wage premium in the Belgian private sector.

Political responses to interdependence: what's “left” for the left?

1991 ◽  
Vol 45 (4) ◽  
pp. 539-564 ◽  
Author(s):  
Geoffrey Garrett ◽  
Peter Lange
Keyword(s):  
Statistical Analyses ◽  
Global Markets ◽  
Economic Interdependence ◽  
Supply Side ◽  
Economic Policies ◽  
Monetary Policies ◽  
Goods And Services ◽  
Industrial Democracies ◽  
World Markets ◽  
The Right

Heightened economic interdependence in recent years is commonly argued to have generated great pressures for convergence in economic policies across the advanced industrial democracies. Interdependence has clearly had a great impact on the types of economic policies that governments can pursue: they have been unable to pursue independent fiscal and monetary policies since the mid-1970s. Furthermore, all governments have been forced to attempt to promote the competitiveness of national goods and services in world markets and to increase the speed and efficiency with which national producers adjust to changes in global markets. There are, however, different policies consistent with these goals. Statistical analyses of economic policies since the mid-1970s show that governments of the left and the right continue to be able to enact distinctive supply-side policies that promote competitiveness and flexible adjustment and simultaneously further their partisan objectives.

Zur Rationalität einer beschäftigungsorientierten Mittelstandsförderung

1999 ◽  
Vol 48 (3) ◽  
Author(s):  
Eckehard Schulz
Keyword(s):  
Production Technology ◽  
Firm Size ◽  
Aggregate Demand ◽  
Theoretical Framework ◽  
Market Forces ◽  
Large Firms ◽  
Intensive Production ◽  
The Impact

AbstractThis study yields the impact of firm size as a determinant of employment. Using the theoretical framework of labor elasticities, it is argued that Small and Medium sized Enterprises (SME’s) are superior in creating jobs if an increase in their share - by reducing the share of large firms - stimulates the aggregate demand for labor. This could be due to a (static) more labor intensive production technology and/or a (dynamic) higher efficiency. The so determined Mittelstands-hypothese is theoretically and empirically examined. Further - from an ordoliberal perspective - the question is raised whether other indicators are more qualified to boost employment and to refresh market forces in the longrun.

How do micro-firms manage coopetition? A study of the wine sector in France

2017 ◽  
Vol 36 (3) ◽  
pp. 331-355 ◽  
Author(s):  
Julien Granata ◽  
Frank Lasch ◽  
Frédéric Le Roy ◽  
Léo-Paul Dana
Keyword(s):  
Firm Size ◽  
Small Firms ◽  
Simultaneous Occurrence ◽  
Large Firms ◽  
Individual Level ◽  
Competition And Cooperation ◽  
South Eastern ◽  
Collective Structure ◽  
Wine Sector

Research on coopetition – the simultaneous occurrence of competition and cooperation among firms – is usually limited to the realm of large firms. While some research has examined the motives and outcomes of coopetition among small- and medium-sized business, little is known about how coopetition is managed among micro-firms. The French wine sector is dominated by micro-firms, among which coopetition is common. Focusing on the Pic Saint Loup area in south-eastern France, this article analyses how micro-firms manage coopetition. While we observe similarities in coopetition with respect to large firms, a distinct micro-firm coopetition mode is identified: (a) contrary to expectations, the management of coopetition is highly formalised in micro-firms; (b) as with large firms, the management of micro-firm coopetition requires a separation between competition and cooperation, but such separation occurs outside the firm – in the form of a collective structure; and (c) in contrast to large firms, small firms exhibit an increase in individual-level dimensions of coopetition with decreasing firm size. We conclude that policy should encourage coopetition among micro-firms provided that it is tailored to micro-firm specificities.

Industrial Research and Firm Size, Survival, and Growth in American Manufacturing, 1921–1946: An Assessment

1983 ◽  
Vol 43 (4) ◽  
pp. 953-980 ◽  
Author(s):  
David C. Mowery
Keyword(s):  
Firm Size ◽  
Small Firms ◽  
Firm Growth ◽  
Industrial Research ◽  
Large Firms ◽  
Research Activity ◽  
Growth And Survival ◽  
Survival And Growth ◽  
The Impact ◽  
The Relationship

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.

scholarly journals Landscape Architects as Related to the Landscape/Nursery Industry: II. Selection of the Production Nursery and Plant Availability

1992 ◽  
Vol 10 (2) ◽  
pp. 73-77
Author(s):  
M.P. Garber ◽  
K. Bondari
Keyword(s):  
Firm Size ◽  
Small Firms ◽  
Large Firms ◽  
Sources Of Information ◽  
Plant Availability ◽  
Significant Difference ◽  
Two Factors ◽  
Survey Results ◽  
Selection Of

Abstract Information concerning the role of the landscape architect in verifying plant availability and selection of the production nursery where landscape contractors obtain plants can help growers develop effective marketing plans. A survey of Georgia landscape architects indicates that about 84% of the respondents confirm availability of plant material specified. A higher percentage of large firms (about 92%) confirm availability compared to medium (85.7%) and small (79.3%) firms. The three most frequently used sources of information for landscape architects to confirm plant availability are favorite local grower, nursery catalogs, and landscape contractor likely to install plants. The top three choices are the same regardless of firm size. Survey results demonstrate that landscape architects not only confirm availability of plants but also play an important role in selecting the production nursery where landscape contractors obtain plants. Approximately 61% of all respondents indicate they determine/recommend the nursery where landscape contractors obtain plants. There is a significant difference among firm size in response to this question with large firms most active in selecting the production nursery (about 92%) followed by medium (57%) and small (50%) firms. The two factors that most influence the decision of large firms are plant quality and plant varieties. Large firms are more price conscious than medium or small firms. The results suggest that growers can enhance their sales by marketing their product directly to landscape architects.

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