Work Decentralisation from Large to Small Firms: A Preliminary Analysis of Subcontracting

1986 ◽  
Vol 18 (7) ◽  
pp. 949-965 ◽  
Author(s):  
R F Imrie
Keyword(s):  
Empirical Research ◽  
Small Firm ◽  
Preliminary Analysis ◽  
Small Firms ◽  
Preliminary Review ◽  
Large Firms ◽  
Central Elements ◽  
Interfirm Linkages

This paper is a preliminary review of small firm subcontracting. It is argued that increasingly subcontracting and other forms of small firm activities are becoming a central part of the operations of large firms. As a result, small firms have to be viewed as central elements in the economy. In this paper three issues are reviewed as a prerequisite to empirical research. First, an outline is presented of theoretical proposals on interfirm linkages. Second, the nature of subcontracting is outlined. The paper concludes with a categorisation of different ways in which subcontracting relations are formed.

Large-Small Firm Networks: A Foundation of the New Globalizing Economy in South Korea

1997 ◽  
Vol 29 (6) ◽  
pp. 1091-1108 ◽  
Author(s):  
M-R Cho
Keyword(s):  
South Korea ◽  
Small Firm ◽  
Small Firms ◽  
Corporate Restructuring ◽  
Global Competitiveness ◽  
Firm Networks ◽  
And Function ◽  
The Relationship ◽  
Interfirm Linkages

In this paper the author examines how Korea's export-oriented economy has laid its new foundation for global competitiveness by deepening interfirm linkages. Korea's interfirm linkages refer mainly to the relationship between large and small firms. Recent corporate restructuring in the large and small firm sectors has caused denser and highly dynamic intercorporate networks to arise. The author argues that the globalizing of economy in Korea is encouraged by efficacious global—local transactions via large—small firm networks, a matter ignored by most analysts. Major foci are on analyzing the forms, structures, governing mechanisms, and function of large—small firm networks.

scholarly journals An investigation into the small firm effect on the Johannesburg Stock Exchange

1986 ◽  
Vol 17 (4) ◽  
pp. 191-195 ◽  
Author(s):  
P. De Villiers ◽  
A. J. Lowings ◽  
T. Pettit ◽  
J. Affleck-Graves
Keyword(s):  
New York ◽  
Small Firm ◽  
Small Firms ◽  
Stock Exchange ◽  
Share Price ◽  
Large Firms ◽  
Investment Performance ◽  
Market Capitalization ◽  
Johannesburg Stock Exchange ◽  
Firm Effect

Recent studies on the New York Stock Exchange have provided empirical evidence which suggests that small market capitalization firms outperform large market capitalization firms in terms of share price performance. This appears valid even after adjusting for the additional risk borne by the small firms. This has become known as the 'small firm effect' and questions the validity of many traditional pricing models such as the Capital Asset Pricing Model. In this paper, the small firm effect is examined on the Johannesburg Stock Exchange. The risk-adjusted performance of portfolios comprising large firms is contrasted with that of small firms. Three measures of size are used, namely market capitalization, asset base and traded volume. In all three cases, no evidence of a small firm effect is apparent. Indeed, if anything, the large firms appear to provide superior investment performance on the JSE.

When Small Firms Fight Back Against Large Firms in R&D Activities

2010 ◽  
Vol 10 (1) ◽  
Author(s):  
Toshihiro Matsumura ◽  
Noriaki Matsushima
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Economies Of Scale ◽  
Large Firm ◽  
Consumer Surplus ◽  
Large Firms ◽  
Product Positioning ◽  
Duopoly Model ◽  
Asymmetric Duopoly ◽  
Positive Effect

Abstract This paper investigates an asymmetric duopoly model with R&D competition and product positioning. We find that an inefficient (small) firm may engage in R&D more intensively than an efficient (large) firm in spite of economies of scale in R&D activities. Contrary to the findings of previous studies, competition is more likely to have a positive effect on the investments of the small firm than on those of the large firm. We also find that improving the efficiency of the inefficient firm can reduce both social and consumer surplus.

Small firm subsistence and market dimensionality

2014 ◽  
Vol 25 (10) ◽  
pp. 1450053 ◽  
Author(s):  
Jeroen Bruggeman ◽  
Gábor Péli
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Large Firms ◽  
Product Innovations ◽  
Parsimonious Explanation ◽  
Market Center

In many markets, large and small firms coexist. As large firms can in principle out-compete small ones, the actual presence of the latter asks for an explanation. In ours, we focus on the dimensionality of markets, which can change as a consequence of product innovations, preference elaboration or institutions. We show that increasing market dimensionality substantially enlarges the market periphery relative to the market center, which creates new potential niches for small firms. We thereby provide a parsimonious explanation for small firm subsistence.

scholarly journals Getting a Foot in the Door: Small-Firm Credit and Interest Group Politics in the Netherlands, 1900–1927

2020 ◽  
pp. 1-37
Author(s):  
RUBEN PEETERS
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Power Structures ◽  
Access To Credit ◽  
Financial Infrastructure ◽  
History Of ◽  
Interest Group Politics ◽  
Group Politics ◽  
The Government

This article explores the link between the history of small-firm associations and the development of Dutch financial infrastructure geared toward small firms. In particular, it tests Verdier’s thesis about the origins of state banking using an in-depth case study of the Dutch small-firm movement. This article shows that Dutch small-firm associations did not simply became politically relevant and use their power to lobby for state banking, but rather used the topic of insufficient access to credit to rally support, mobilize members, and obtain subsidies from the government. During this associational process, they had to navigate local contexts and power structures that, in turn, also shaped the financial system. State banking was initially not demanded by small firms, but arose as the result of failed experiments with subsidized banking infrastructure and a changing position of the government on how to intervene in the economy.

The Strategic Behavior of Firms with Debt

2016 ◽  
Vol 51 (5) ◽  
pp. 1611-1636 ◽  
Author(s):  
Jérôme Reboul ◽  
Anna Toldrà-Simats
Keyword(s):  
Small Firms ◽  
Strategic Behavior ◽  
Financing Constraints ◽  
Large Firms ◽  
Market Shares ◽  
Probability Of Bankruptcy ◽  
The Difference

We empirically study the strategic behavior of levered firms in competitive and noncompetitive environments. We find that regulation induces firms to increase leverage, and this reduces their ability to compete when deregulation occurs. Large and small levered firms adopt different strategies upon deregulation. Whereas more levered small firms charge higher prices to increase margins at the expense of market shares, highly levered large firms prey on their rivals by increasing output and reducing prices to increase their market shares. The difference in their behavior is due to differences in their probability of bankruptcy and their financing constraints.

An Analysis of Big 4 Pricing and Firm Size: The Differential Impact of Demand and Supply Shocks on Large and Small Clients

2017 ◽  
Vol 34 (2) ◽  
pp. 204-230 ◽  
Author(s):  
Fatima Alali ◽  
Randal Elder ◽  
Jian Zhou
Keyword(s):  
Small Firm ◽  
Great Recession ◽  
Small Firms ◽  
Unique Contribution ◽  
Demand And Supply ◽  
The Great Recession ◽  
Audit Market ◽  
Sarbanes Oxley ◽  
Big 4 ◽  
Recession Period

We investigate Big 4 pricing over the period of 2000 to 2010. We classify the data into five periods: 2000-2001 as the pre-Sarbanes–Oxley Act (SOX) period, 2002-2003 as the SOX period, 2004-2006 as the Auditing Standard 2 (AS2) period, 2007 as the AS5 period, and 2008-2010 as the Great Recession period. The shocks to the audit market associated with these changes in auditing regulations and the economic environment have differential impacts on large clients and small clients. The percentage of small clients using Big 4 auditors dropped significantly over these shocks, whereas the percentage of large clients using Big 4 auditors experienced a large drop only from the SOX period to the AS2 period. We find that Big 4 pricing increased significantly from the pre-SOX period to the SOX period and continued to increase significantly in the AS2 period. Big 4 pricing experienced a significant decline in the AS5 period and declined insignificantly in the Great Recession period. Big 4 small firm pricing decreased significantly in the AS2 period compared with the SOX period and in the Great Recession period compared with the AS5 period. We find that the Big 4 pricing for small clients is contingent on the nature of competition. The Big 4 charged small firms higher prices in the SOX period, AS5 period, and Great Recession period when competition was lower. Our paper provides a unique contribution as a comprehensive analysis of Big 4 pricing and Big 4 small firm pricing.

scholarly journals The impact of effectuation on small firm buying decisions

IMP Journal ◽  
2018 ◽  
Vol 12 (3) ◽  
pp. 444-459 ◽  
Author(s):  
Phillip McGowan
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Personal Selling ◽  
Business Networks ◽  
Content Type ◽  
Research Findings ◽  
Entrepreneurial Decision ◽  
Interaction Approach ◽  
The Impact ◽  
Relationship Decisions

Purpose The purpose of this paper is to consider the effect of effectuation logic on the buying intentions of small firm owner-managers. Design/methodology/approach Literature relating to organisational buying, marketing and personal selling and entrepreneurial decision making was synthesised. Findings This paper presents a conceptual model based on propositions relating to how effectuation logic may explain the predilection of small firm owner-managers to select trusted suppliers from within personal and business networks, and to engage on flexible terms. It suggests that supplier relationship decisions made using effectuation logic may enable wider choice of suppliers than the formal processes of large firms. Research limitations/implications The findings were developed from a narrative review of literature and are yet to be empirically tested. Originality/value By synthesising research findings on small firm buyer behaviour, the IMP interaction approach and effectuation, it has been possible to develop a predictive model representing buyer–seller relationships in the context of small firms which suggests that owner-managers select suppliers in line with the principles of effectuation means and effectuation affordable loss.

scholarly journals Barriers for Eco-Innovations: A Case Study of a Small Firm in Poland

2013 ◽  
Vol 5 (1) ◽  
pp. 27-32 ◽  
Author(s):  
Andrzej H. Jasiński ◽  
Filip Tużnik
Keyword(s):  
Small Firm ◽  
Small Firms ◽  
Market Competition ◽  
Generation Gap ◽  
Local Administration ◽  
Retirement Age ◽  
Legal Regulations ◽  
Specific Nature ◽  
Innovative Solutions

Abstract This paper is mainly based on a case study of Tuzal Ltd. - a small firm acting in the eco-innovation market in Poland. The main aim of the paper is to analyze main barriers which are being met by enterprises, especially small firms, acting in the eco-innovation market. The following barriers are analysed: problems in convincing customers to innovative solutions; a specific nature of cooperation with local administration units; continuous changes in legal regulations; an increasing market competition; a lack of funds for marketing; a generation gap and a retirement age of the company’s owner.

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