How Flexible are Small Firms? An Analysis on the Determinants of Flexibility - Economic Research Forum (ERF)

How Flexible are Small Firms? An Analysis on the Determinants of Flexibility

Güven Sak and Erol Taymaz


Date:
August, 2004

NO.
416

Length:
19 pages

Topic:
D. Microeconomics
O1. Economic Development

Although the standard microeconomic analysis is usually based on the assumption of the existence of a “representative firm,” it is known, as early as the time of the classical economists, that industrial economies are characterized by persistent heterogeneity among firms. Flexibility is one of the main sources of heterogeneity that is used to explain the vitality of small firms. It is suggested that small firms are more flexible than large firms; therefore, they can survive in an uncertain environment. This paper studies four sources of flexibility (technology, employment, networking, and entry/exit) in Turkish manufacturing industries. Whereas there are no differences between small and large firms in terms of flexibility of technology and employment practices, dynamic aspects, i.e. entry, exit, and growth processes are the main sources of small firm flexibility.

ملخص

بالرغم من أن تحليل الاقتصاد الجزئي عادًة ما يعتمد على افتراض وجود “مؤسسة نموذجية”، إلا أنه من المعروف منذ عهد العلماء الاقتصاديين التقليدين أن الاقتصاد الصناعي يمتاز بكونه ذو عناصر دائمة التغير بين المؤسسات. من أهم مصادر تغير العناصر والتي يتم استخدامها لشرح نشاط المؤسسات الصغيرة هو عنصر المرونة، حيث يُعتقد أن المؤسسات الصغيرة أكثر مرونة من المؤسسات الضخمة، و هو ما يسمح لها بالبقاء بثبات في ظل ظروف متقلبة. يقوم هذا البحث بدراسة أربع مصادر للمرونة في الصناعات التركية (التكنولوجيا، والتوظيف، والشبكات والدخول والخروج)، و قد ظهر أن المصدر الأساسي لمرونة المؤسسات الصغيرة يتمثل في الجوانب الديناميكية، أي في عمليات الدخول، والخروج، والنمو، بينما لا يوجد اختلاف كبير بين المؤسسات الصغيرة وتلك الكبيرة فيما يخص مرونة ممارسات التكنولوجيا والتوظيف

Senior Associates

Güven Sak

The Economic Policy Research Foundation of Turkey, TEPAV


Research Fellows

Erol Taymaz

Professor, Middle East Technical University, Ankara


Project

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