Performance, Firm Size and the Heterogeneity of Competitive Strategy for Long-lived Small Firms: A Simultaneous Equations Analysis
- Topics:
- Competitive Strategy
- Tags:
- Analysis,
- University College Cork,
- Trade-off,
- Strategy,
- Performance Management,
- Performance,
- Marketing Research,
- Marketing,
- Management,
- Human Resources,
- ...
- Source:
- University College Cork
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Overview: This paper examines the relationship between firm size, competitive strategy and performance, for the long-lived small firm. It uses structural modeling to test the hypothesis that small firms need to remain small if they are to be long-lived. In a three equation simultaneous model, performance, size and the dimensions of the competitive strategy of the firm are jointly determined. Econometric estimates of the three equations are reported, using 2SLS and iterated 3SLS. A trade-off is found to exist between firm size and performance. Further, it finds that to attain higher equilibrium values of performance, a varied competitive strategy needs to be adopted.
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Format: PDF | Size: 307KB | Date: Aug 2003 | Pages: 34





