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Productivity efficiency and firm size: An empirical analysis of foreign owned companies

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  • Halkos, George Emmanuel
  • Tzeremes, Nickolaos G.

Abstract

There are various arguments about the impact of firm size on productivity growth. On one hand, it is claimed that large firms could be more efficient in production because they could use more specialized inputs, better coordinate their resources, etc. On the other hand, it is emphasized that small firms could be more efficient because they have flexible, non-hierarchical structures, and do not usually suffer from the so-called agency problem. This paper argues that size exerts an indirect effect on firms' productivity, as it conditions the impact of internal factors on productivity. By using different methodological approaches to assess the impact of different characteristics of foreign owned firms on productivity, this paper analyzes to what extend the heterogeneous pattern of productivity can be accounted for by the levels of those factors.

Suggested Citation

  • Halkos, George Emmanuel & Tzeremes, Nickolaos G., 2007. "Productivity efficiency and firm size: An empirical analysis of foreign owned companies," International Business Review, Elsevier, vol. 16(6), pages 713-731, December.
  • Handle: RePEc:eee:iburev:v:16:y:2007:i:6:p:713-731
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    Cited by:

    1. Fujii, Hidemichi & Iwata, Kazuyuki & Kaneko, Shinji & Managi, Shunsuke, 2012. "Corporate environmental and economic performances of Japanese manufacturing firms: Empirical study for sustainable development," MPRA Paper 39564, University Library of Munich, Germany.
    2. Denicolai, Stefano & Zucchella, Antonella & Strange, Roger, 2014. "Knowledge assets and firm international performance," International Business Review, Elsevier, pages 55-62.
    3. Horta, I.M. & Camanho, A.S. & Moreira da Costa, J., 2012. "Performance assessment of construction companies: A study of factors promoting financial soundness and innovation in the industry," International Journal of Production Economics, Elsevier, vol. 137(1), pages 84-93.
    4. repec:eee:touman:v:36:y:2013:i:c:p:650-657 is not listed on IDEAS
    5. Halkos, George & Tzeremes, Nickolaos, 2007. "Examining the relationship between firm internationalization and firm performance: A nonparametric analysis," MPRA Paper 32082, University Library of Munich, Germany.

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