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An Inverse Relationship between Efficiency and Profitability According to Size of (Upper-)Austrian Firms? Some Further Tentative Results

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  • Schneider, Friedrich
  • Lenzelbauer, Werner

Abstract

This paper examines the relationships between profitability and firm size, and efficiency and firm size, based on firms in Upper Austria. There is considerable evidence suggesting that the average profitability of small enterprises exceeds that of large firms. However, productivity tends to be positively related to firm size. These empirical findings present something of a paradox. Copyright 1993 by Kluwer Academic Publishers

Suggested Citation

  • Schneider, Friedrich & Lenzelbauer, Werner, 1993. "An Inverse Relationship between Efficiency and Profitability According to Size of (Upper-)Austrian Firms? Some Further Tentative Results," Small Business Economics, Springer, vol. 5(1), pages 1-22, March.
  • Handle: RePEc:kap:sbusec:v:5:y:1993:i:1:p:1-22
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    Cited by:

    1. Stephen Roper, 1998. "Plant Size and Industry-mix Effects on UK Regional Productivity, Wage Costs and Operating Surplus," Regional Studies, Taylor & Francis Journals, vol. 32(4), pages 325-332.
    2. Neba Bhalla & Rakesh Kumar Sharma & Inderjit Kaur, 2022. "Effect of Tax Knowledge and Technological Shift in Tax System on Business Performance: A PLS-SEM Analysis," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    3. Chowdhury, Sanjib & Schulz, Eric & Milner, Morgan & Van De Voort, David, 2014. "Core employee based human capital and revenue productivity in small firms: An empirical investigation," Journal of Business Research, Elsevier, vol. 67(11), pages 2473-2479.
    4. Manuel Landajo & Javier De Andrés & Pedro Lorca, 2008. "Measuring firm performance by using linear and non‐parametric quantile regressions," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 57(2), pages 227-250, April.

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