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Are Small Firms Really Sub-Optimal?: Compensating Factor Differentials in Small Dutch Manufacturing Firms

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Author Info
Audretsch, D.B.
van Leeuwen, G.
Menkveld, B.
Thurik, R.

Additional information is available for the following registered author(s):

Abstract

The advent of a growing share of small firms in modern economies raises some intriguing questions. The most intriguing question undoubtedly is why so many smaller firms, which have traditionally been classified as sub-optimal scale firms, can exist. The authors suggest that, through pursuing a strategy of copmpensating factor differentials, that is by remunerating and deploying factors of production differently than their larger counterparts, small firms are able to compensate for inherent-siza cost disadvantages.

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Publisher Info
Paper provided by NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM in its series Papers with number 9902/e.

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Length: 47 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:miklrr:9902/e

Contact details of provider:
Postal: RESEARCH INSTITUTE FOR SMALL AND MEDIUM-SIZED BUSINESS IN THE NETHERLANDS, NEUHUYS.

For technical questions regarding this item, or to correct its listing, contact: (Thomas Krichel).

Related research
Keywords: SIZE OF ENTERPRISE ; MANUFACTURES ; EFFICIENCY;

Other versions of this item:

Find related papers by JEL classification:
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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This page was last updated on 2009-12-16.


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