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Managerial efficiency and size: an assessment of strategic potential of Italian manufacturing firms

Author

Listed:
  • Fabrizio Erbetta

    (UPO - Università degli Studi del Piemonte Orientale - Amedeo Avogadro)

  • Giovanni Fraquelli

    (UPO - Università degli Studi del Piemonte Orientale - Amedeo Avogadro)

Abstract

This paper examines the efficiency differentials with reference to a large sample of Italian manufacturing enterprises. The literature on the subject has frequently emphasized the weakness inherent in a fragmented industrial system. Recently, however, some authors have extensively re-evaluated the role of medium-sized companies, as characterised by a potentially winning combination of "structure" and "flexibility". Applying the nonparametric DEA (Data Envelopment Analysis) approach to a set of medium and large firms, the results provide an overview of the disaggregated efficiency components. The medium-small business seems to benefit from the best conditions of efficiency, attributable to a more rational use of labour as well as a more disciplining role of external financial market.

Suggested Citation

  • Fabrizio Erbetta & Giovanni Fraquelli, 2012. "Managerial efficiency and size: an assessment of strategic potential of Italian manufacturing firms," Post-Print hal-03469246, HAL.
    • Handle: RePEc:hal:journl:hal-03469246
    Note: View the original document on HAL open archive server: https://hal.science/hal-03469246
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