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Firm size and growth opportunities: a survey

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  • A. Arrighetti
  • A. Ninni

    ()

Abstract

The qualifying aspect of the ongoing changes in firm growth processes seems to be the increased heterogeneity of size and a trend towards a broader fluctuation in average size. Exogenous factors (market size, demand trends, technological innovations, higher competition) determine a different impact on firms will to increase their own size, while endogenous variables play a greater role than in the past. The outcome is represented by a growth pattern that characterises some firms, but not all of them. Growth appear to be an asymmetric phenomenon, involving selectively but not casually a subgroup of firms. In the present paper it is hypothesized that growth stems from the asymmetric distribution of internalized resources (both material and immaterial), allowing some firms (regardless of the original size) to enter evolutionary paths that others don’t want or simply can’t enter.

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Bibliographic Info

Paper provided by Department of Economics, Parma University (Italy) in its series Economics Department Working Papers with number 2009-EP05.

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Length: 26
Date of creation: 2009
Date of revision:
Handle: RePEc:par:dipeco:2009-ep05

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Keywords: Firm Growth; Size Distribution; Gibrat’s Law; Industrial Dynamics; Human Capital; Intangible Assets; Industrial Policy;

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Cited by:
  1. Giorgio Barba Navaretti & Davide Castellani & Fabio Pieri, 2012. "Age and firm growth. Evidence from three European countries," Working Papers 1217, Department of Applied Economics II, Universidad de Valencia.

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