All Hail Large Firms: Reconciling the Firm Size and Innovation Debate

2015 ◽  
Author(s):  
Anne Marie Knott ◽  
Carl Vieregger
Keyword(s):  
Firm Size ◽  
Large Firms

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 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.

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.

The Manager's Self Assessments of Managerial Roles: Small vs. Large Firms

1984 ◽  
Vol 8 (3) ◽  
pp. 58-64 ◽  
Author(s):  
Joseph G.P. Paolillo
Keyword(s):  
Discriminant Analysis ◽  
Analysis Of Variance ◽  
Firm Size ◽  
Quadratic Discriminant Analysis ◽  
Large Firms ◽  
Small Organizations ◽  
Managerial Roles ◽  
Self Assessments ◽  
Role Profile

This study systematically assessed the various roles essential to managers in small vs. large firms. A sample of 352 managers from both large and small organizations in a variety of industries were asked to rate the various roles required by their positions. The analysis of variance results indicate that 7 of the 10 roles are influenced by firm size. A quadratic discriminant analysis was utilized to identify a role profile for managers in small vs. large firms. Implications for the practice and teaching of business are discussed.

Firm Size and the Relationship Between Wage Dispersion and Firm Performance

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.

Corporate hedging, firm focus and firm size: the case of REITs

2017 ◽  
Vol 43 (3) ◽  
pp. 313-330 ◽  
Author(s):  
Peihwang Wei ◽  
Li Xu ◽  
Bei Zeng
Keyword(s):  
Firm Size ◽  
Linear Relation ◽  
Large Firms ◽  
Corporate Hedging ◽  
Content Type ◽  
Geographic Concentration ◽  
Property Type ◽  
Regression Approach ◽  
Non Linear ◽  
Diversified Firms

Purpose The purpose of this paper is to investigate the substitutability of corporate hedging and diversification in the real estate investment trusts (REITs) industry. The authors hypothesize that, relative to diversified firms, focused firms are more likely to be associated with hedging. The role of firm size is also analyzed. Design/methodology/approach The logistic regression approach is utilized to analyze the probability of hedging and the panel regression approach is used to examine the amount of hedging. Findings The authors find that, relative to diversified firms, firms focused on a single property type are more likely to engage in hedging. However, this finding is significant only for smaller firms, which implies a non-linear relation between hedging and firm size. The evidence is not as strong when firm focus is measured by geographic concentration. In terms of hedging amount, smaller firms’ average hedge ratio is greater than that of larger firms. For either small or large firms group, hedging amounts increase with firm focus measured by either property or geographic concentration and increase with firm sizes. Research limitations/implications The results imply that, relative to diversified REITs, REITs focused on a single property type are more likely to engage in hedging. However, this finding is significant only for smaller firms, which implies a non-linear relation between hedging and firm size. The evidence is not as strong when firm focus is measured by geographic concentration, suggesting that geographic concentration is perceived to be less risky than property type concentration. For either small or large firms group, hedging amounts increase with firm focus measured by either property or geographic concentration and increase with firm sizes, which implies that hedging amount does not depend on firm size. The sample period is limited to the years 2010 to 2013 because some data needs to be manually collected. Practical implications The results imply that REITs consider both property diversification and hedging in managing their risk. Originality/value The research represents an early attempt to investigate the relation between corporate hedging and diversification. The investigation into the REIT industry has several advantages such as a lower likelihood of using derivatives for speculation.

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