Flexibility and small firms' survival

Further evidence from Malaysian manufacturing

Norashidah Mohamed Nor, Nor Ghani Md Nor, Nor Ghani Md Nor, Ahmad Zainuddin Abdullah, Suhaila Abd Jalil

Research output: Contribution to journalArticle

7 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)931-934
Number of pages4
JournalApplied Economics Letters
Volume14
Issue number12
DOIs
Publication statusPublished - Oct 2007

Fingerprint

Small firms
Manufacturing
Firm survival
Large firms
Average cost
Firm size
Developing countries
Malaysia
Production efficiency
Industry data
Niche

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Flexibility and small firms' survival : Further evidence from Malaysian manufacturing. / Nor, Norashidah Mohamed; Md Nor, Nor Ghani; Nor, Nor Ghani Md; Abdullah, Ahmad Zainuddin; Jalil, Suhaila Abd.

In: Applied Economics Letters, Vol. 14, No. 12, 10.2007, p. 931-934.

Research output: Contribution to journalArticle

Nor, Norashidah Mohamed ; Md Nor, Nor Ghani ; Nor, Nor Ghani Md ; Abdullah, Ahmad Zainuddin ; Jalil, Suhaila Abd. / Flexibility and small firms' survival : Further evidence from Malaysian manufacturing. In: Applied Economics Letters. 2007 ; Vol. 14, No. 12. pp. 931-934.
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