IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v14y2007i12p931-934.html
   My bibliography  Save this article

Flexibility and small firms' survival: further evidence from Malaysian manufacturing

Author

Listed:
  • Norashidah Mohamed Nor
  • Nor Ghani Md. Nor
  • Ahmad Zainuddin Abdullah
  • Suhaila Abd. Jalil

Abstract

This study investigates the role played by production flexibility in explaining the lasting presence of small firms alongside their larger counterparts in the market. The production flexibility hypothesis postulates that the market place provides room for both large and small firms because large firms benefit from low minimum average costs and static production efficiency, while small firms, with higher minimum average costs, are more flexible. Unlike previous studies that used data from developed economies, this study tests the hypothesis using industry data from a developing country, Malaysia. Results show that there exist a negative relationship between firm size and sales variability suggesting that large and small firms each have their own efficiency niches.

Suggested Citation

  • Norashidah Mohamed Nor & Nor Ghani Md. Nor & Ahmad Zainuddin Abdullah & Suhaila Abd. Jalil, 2007. "Flexibility and small firms' survival: further evidence from Malaysian manufacturing," Applied Economics Letters, Taylor & Francis Journals, vol. 14(12), pages 931-934.
  • Handle: RePEc:taf:apeclt:v:14:y:2007:i:12:p:931-934
    DOI: 10.1080/13504850600706065
    as

    Download full text from publisher

    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/13504850600706065&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brown, Drusilla & Dehejia, Rajeev & Robertson, Raymond, 2016. "Laws, Costs, Norms, and Learning: Improving Working Conditions in Developing Countries," IZA Discussion Papers 10025, Institute for the Study of Labor (IZA).
    2. Robertson, Raymond & Brown, Drusilla & Dehejia, Rajeev, 2016. "Working Conditions and Factory Survival: Evidence from Better Factories Cambodia," IZA Discussion Papers 10026, Institute for the Study of Labor (IZA).
    3. Renner, Swetlana & Glauben, Thomas & Hockmann, Heinrich, 2012. "Measurement And Decomposition Of Flexibility Of Multi-Output Firms," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 124865, International Association of Agricultural Economists.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:14:y:2007:i:12:p:931-934. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.