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Managerial Efficiency and Firm Size: An Assessment of the Strategic Potential of Italian Manufacturing Industries


  • Erbetta Fabrizio
  • Fraquelli Giovanni


The main aim of the study is to examine the relationship between firm size and efficiency in Italian manufacturing industries. Although the literature has sometimes underlined the intrinsic weakness of an excessive fragmentation in industry organization, some authors have recently emphasized the role of medium-sized firms, as potentially benefitting from a mix of «structure» and «flexibility». Using Data Envelopment Analysis (DEA) on a sample of medium and large firms, the study disentangles technical efficiency into managerial and scale components. The results show a higher performance of small-medium class, associated with a more rational use of labour factor and a discipline effect of short-run debt.

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  • Erbetta Fabrizio & Fraquelli Giovanni, 2010. "Managerial Efficiency and Firm Size: An Assessment of the Strategic Potential of Italian Manufacturing Industries," L'industria, Società editrice il Mulino, issue 3, pages 397-422.
  • Handle: RePEc:mul:j0hje1:doi:10.1430/32501:y:2010:i:3:p:397-422

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    References listed on IDEAS

    1. Luís M B Cabral & José Mata, 2003. "On the Evolution of the Firm Size Distribution: Facts and Theory," American Economic Review, American Economic Association, vol. 93(4), pages 1075-1090, September.
    2. Giulio Bottazzi & Elena Cefis & Giovanni Dosi & Angelo Secchi, 2003. "Invariances and Diversities in the Evolution of Manufacturing Industries," LEM Papers Series 2003/21, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Nunes Amaral, Luís A & Buldyrev, Sergey V & Havlin, Shlomo & Maass, Philipp & Salinger, Michael A & Eugene Stanley, H & Stanley, Michael H.R, 1997. "Scaling behavior in economics: The problem of quantifying company growth," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 244(1), pages 1-24.
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    Firm Size; Efficiency; Manufacturing Firms;


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