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Are Small Firms Really Less Productive?

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Author Info
Erol Taymaz ()

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Abstract

Small and medium-sized establishments (SMEs) account for a large proportion of industrial employment and production in almost all countries. Moreover, the recent literature emphasizes the role SMEs play in nurturing entrepreneurship and generating new products and processes. Although SMEs could be a source of new ideas and innovations, there are substantial productivity differences between small and large establishments. In this paper, we analyze three sources of productivity differentials: technical efficiency, returns to scale, and technical change. Our analysis on the creation, survival, and growth of new establishments in Turkish manufacturing industries in the period 1987–1997 shows that all these three factors play a very important role in determining the survival probability and growth prospects of new establishments. Copyright Springer 2005

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File URL: http://hdl.handle.net/10.1007/s11187-004-6492-x
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Publisher Info
Article provided by Springer in its journal Small Business Economics.

Volume (Year): 25 (2005)
Issue (Month): 5 (December)
Pages: 429-445
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:sbusec:v:25:y:2005:i:5:p:429-445

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Web page: http://www.springerlink.com/link.asp?id=100338

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Related research
Keywords: Productivity; efficiency; innovation; firm dynamics; D24; L11; L25;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. P.A. Geroski & José Mata & Pedro Portugal, 2007. "Founding Conditions and the Survival of New Firms," DRUID Working Papers 07-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Chih-Hai Yang & Ku-Hsieh Chen, 2009. "Are small firms less efficient?," Small Business Economics, Springer, vol. 32(4), pages 375-395, April. [Downloadable!] (restricted)
  2. M.A. Carree & A.R. Thurik, 2008. "The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries," Small Business Economics, Springer, vol. 30(1), pages 101-110, January. [Downloadable!] (restricted)
    Other versions:
  3. Oh, Inha & Heshmati, Almas & Baek, Chulwoo & Lee, Jeong-Dong, 2006. "Comparative Analysis of Firm Dynamics by Size: Korean Manufacturing," Ratio Working Papers 94, The Ratio Institute.
  4. Carlos Pestana Barros, 2008. "The Technical Efficiency of UK Airports," Working Papers 2008/10, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
  5. Buendía Azorín, J.D. & Esteban Yago, M.A. & Sánchez De La Vega, J.C., 2009. "Índices de valor unitario del comercio exterior de la región de Murcia y contribución de las exportaciones al crecimiento regional/," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 285 (22 P, Abril. [Downloadable!] (restricted)
  6. Erol Taymaz & Şule Özler, 2007. "Foreign Ownership, Competition, and Survival Dynamics," Review of Industrial Organization, Springer, vol. 31(1), pages 23-42, August. [Downloadable!] (restricted)
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