Skip to main content
SpringerLink
Log in

Size, Age and Activity Sector on the Growth of the Small and Medium Firm Size

  • Published:
Small Business Economics Aims and scope Submit manuscript

Abstract

Although corporate growth is one of the most researched subjects in different areas of economic science, it is not currently based on a general theory or generally accepted conceptual definition. In spite of this, growth has usually been considered an essential objective for a firm, contributing to its survival and competitiveness. This work aims to provide a more in-depth study of the factors that condition the growth of small and medium-sized firms, by offering some empirical evidence that will contribute to its modelling, especially in relation to the influence of size, age and activity sector. In this context, we shall attempt to contrast the validity of Gibrat's approach and the Learning Theory.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Acs, Zoltan J. and David B. Audretsch, 1988, ‘Innovation in Large and Small Firms: An Empirical Analysis’, The American Economic Review 78(4) (September), 678–690.

    Google Scholar 

  • Act 19/1994, Ley de seis de julio, de modificación del Régimen Económico y Fiscal de Canarias, BOE nÚmero 161, fecha de publicación 07-07-1994.

  • Act 20/1991, Ley de siete de junio de modificación de los aspectos fiscales del R.E.F., BOE nÚmero 137, fecha de publicación 08-06-1991 Alonso, C., D. Godenau, P. Gutiérrez, R. Hernández, C.

  • Rodríguez, J. Rodríguez and A. Vera, 1995, Canarias: la economía, S/C de Tenerife: Centro de la Cultura Popular Canaria.

  • Amirkhalkhali, S. and A. K. Mukhopadhyay, 1993, ‘The Influence of Size and R&D on the Growth of Firms in the U.S.’, Eastern Economic Journal 19(2) (Spring), 223–233.

    Google Scholar 

  • Asociacion Española de Contabilidad y Administración de Empresas [AECA], 1996, Crecimiento de la empresa: Modalidades y Estrategias, Madrid: AECA.

    Google Scholar 

  • Baumol, W. J., 1959, Business Behavior, Value and Groth, New York: Harcout, Brace and World.

    Google Scholar 

  • Baumol, W. J., 1962, ‘On the Theory of Expansion of the Firm’, American Economic Review (December), 1078–1087.

  • Boeri, T. and L. Bellmann 1995, ‘Post-entry Behaviour and the Cycle: Evidence from Germany’, International Journal of Industrial Organization 13(4) (December), 483–500.

    Google Scholar 

  • Brouwer, M., 1998, ‘Commentary: Firm Size and Efficiency in Innovation: Comment on van Dijk et al.’, Small Business Economics 11, 391–393.

    Google Scholar 

  • Bueno, E. and P. Lamothe, 1986, ‘Tamaño y Rentabilidad de la gran empresa española: un análisis empírico de su relación basado en un método multicriterio’, II Congreso de AECA, Madrid: IPC.

    Google Scholar 

  • Cabral, L., 1995, ‘Sunk Cots, Firm Size and Firm Growth’, Journal of Industrial Economics XLIII(2) (June), 161–172.

    Google Scholar 

  • Chenery, H. B., 1952, ‘Over Capacity and the Acceleration Principle’, Econométrica 20(1), 1–28

    Google Scholar 

  • Comercial Performance Information Bureau of the Bank Of Spain. Central de Balances del Banco de España, 1997, Resultados anuales de las empresas no financieras. 1996, Madrid: Servicio de Publicaciones del Banco de España.

    Google Scholar 

  • Correa, A., 1999, Factores Determinantes del Crecimiento Empresarial. Tesis Doctoral. Universidad de La Laguna.

  • Das, S., 1995, ‘Size, Age and Firm Growth in an Infant Industry: The Computer Hardware Industry in India’, International Journal of Industrial Organization 13, 111–126.

    Google Scholar 

  • Dunne, P. and A. Hughes, 1994, ‘Age, Size, Growth and Survival: U.K. Companies in the 1980s’, The Journal of Industrial Economics XLII(2) (June), 115–139.

    Google Scholar 

  • Dunne, T., M. J. Roberts and L. Samuelson, 1989, ‘The Growth and Failure of U.S. Manufacturing Plants’, The Quaterly Journal of Economics (November), 671–698.

  • Erickson, R. and A. Pakes, 1995, ‘Markov-Perfect Industry Dynamics: A Framework for Empirical Work’, Review of Economics Studies 62(1), 53–82.

    Google Scholar 

  • Evans, D. S., 1987a, ‘Tests of Alternative Theories of Firm Growth’, Journal of Political Economy 95(4), 657–674.

    Google Scholar 

  • Evans, D. S., 1987b, ‘The Relationship Between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries’, The Journal of Industrial Economics XXXV(4), 567–581.

    Google Scholar 

  • Fariñas, J. C. and L. Moreno, 1997, ‘Size, Age and Growth: an Application to Spanish Manufacturing Firms’, Documento de trabajo Fundación Empresa PÚblica, no 9705.

  • Fundación Banco Bilbao Vizcaya, 1997, Renta Nacional de España y su Distribución Provincial 1993. Avance 1994-1995, Bilbao: Fundación BBV.

    Google Scholar 

  • Geroski, P. A., 1995, ‘What Do We Know about Entry?’, International Journal of Industrial Organization 13, 421–440.

    Google Scholar 

  • Gibrat, R., 1931, Les Inégalités Économiques, Paris: Dunod.

    Google Scholar 

  • Gil, J. A., 1995, ‘Canarias ante el futuro: estrangulamientos y estrategias’, Papeles de Economía Española. Economía de las Comunidades Autónomas 15, 78–87.

    Google Scholar 

  • Golfend, S. M. and R. E. Quand, 1972, Nonlinear Methods in Econometrics, Amsterdam: North-Holland Publishing Company.

    Google Scholar 

  • González, A. L. and A. Correa, 1998, ‘Crecimiento y Tamaño: Un estudio empírico’, Revista Española de Financiación y Contabilidad XXVII(95), 541–573.

    Google Scholar 

  • Grant, R., 1991, ‘The Resouse-Base Theory of Competitive Advantage: Implication for Strategy Formulation' California Management Review 33, 114–135.

    Google Scholar 

  • Hall, B. H., 1987, ‘The Relationship between Firm Size and Firm Growth in the U.S. Manufacturing Sector’, The Journal of Industrial Economics XXXV(4), 583–606.

    Google Scholar 

  • Harhoff, D., K. Stahl and M. Woywodes, 1998, ‘Legal Form, Growth and Exit of West German Firms-empirical Results for Manufacturing Construction, Trade and Service Industries’, The Journal of Industrial Economics XLVI(4), 453–487.

    Google Scholar 

  • Hart, P. E., 1962, ‘The Size and Growth of Firms’, Económica 29(113), 29–39.

    Google Scholar 

  • Hymer, S. and P. Pashigian, 1959, ‘Firm Size and Rate of Growth’, Econométrica 27, 556–569.

    Google Scholar 

  • Jorgenson, D. W., 1963, ‘Capital Therory and Investment Behavior’, American Economic Review 53, 247–259.

    Google Scholar 

  • Jovanovic, B., 1982, ‘Selection and Evolution of Industry' Econometrica 50, 508–523.

    Google Scholar 

  • Koyck, L. M., 1954, Distributed Lags and Investment Analysis, Amsterdam: North Holland.

    Google Scholar 

  • Kumar, M. S., 1985, ‘Growth, Acquisition Activity and Firm Size: Evidence from de United Kingdom’, Journal of Industrial Economics 33, 327–338.

    Google Scholar 

  • Lewellen,W. G. and R. Hunstman, 1970, ‘Managerial Pay and Corporate Performance’, American Economic Review (September).

  • Mansfield, E., 1962, ‘Entry, Innovation, and the Growth of Firms’, American Economic Review 52, 1023–1051.

    Google Scholar 

  • Maravall, F., 1976, Crecimiento, dimensión y concentración de las empresas industriales en España, Madrid: Fundación INI.

    Google Scholar 

  • Marris, R, 1964, The Economic Theory of 'Managerial' Capitalism, New York: The Free Press of Glencox.

    Google Scholar 

  • Mata, J. and J. A. Machado, 1996, ‘Firm Start-up Size: A Conditional Quantile Approach’, European Economic Review 40, 1305–1323.

    Google Scholar 

  • Mata, J., P. Portugal and P. Guimaraes, 1995, ‘The Survival of New Plants: Start-up Conditions and Post-entry Evolution’, International Journal of Industrial Organization 13, 459–481.

    Google Scholar 

  • McCloughan, P., 1995, ‘Simulation of Concentration Development from Modified Gibrat Growth-entry-exit Processes’, The Journal of Industrial Economics XLIII(4), 405–433.

    Google Scholar 

  • McPherson, M. A., 1996, ‘Growth of Micro and Small Enterprises in Southern Africa’, Journal of Development Economics 48, 253–277.

    Google Scholar 

  • Melchior, M., T. Gutiérrez and J. R. Oreja, 1997, ‘La actividad empresarial en Canarias’, Situación. Serie de Estudios Regionales, 273–288.

  • Nelson, R. and S. G. Winter, 1982, An Evolutionary Theory of Economic Change, Cambridge, MA: Harvard University Press.

  • Penrose, E. T., 1959, The Theory of the Growth of the Firm, Oxford University Press. Versión Española (1962): Teoría del Crecimiento de la empresa, Aguilar, Madrid.

    Google Scholar 

  • Penrose, E. T., 1995, The Theory of the Growth of the Firm, 3a edición, Oxford: Oxford University Press.

  • Prahalad, C. K. and G. Hamel, 1991, ‘La organización por unidaes estratégicas de negocio ya no sirve’, Harvard-Deusto Business Review (primer trimestre), 47–64.

  • Prais, S. J., 1976, The Evolution of Giant Firms in Britain, Cambridge: Cambridge University Press.

    Google Scholar 

  • Samuels, J. M., 1965, ‘Size and Growth of Firms’, Review of Economic Studies 32, 105–112.

    Google Scholar 

  • Spanish Society of Registrars of Deeds and Companies.

  • Colegio de Registradores de la Propiedad y Mercantiles de España, 1996, Resultados de la empresa canaria. Informe de los ejercicios 1990-93. Central de Balances, Madrid: Centro de Estudios Regístrales.

    Google Scholar 

  • Sutton, J.,1997, ‘Gibrat's Legacy’, Journal of Economic Literature, XXXV, 40–59.

    Google Scholar 

  • Viner, J., 1932, ‘Cost Curves and Supply Curves’, Zeitschrift für Nationalökonomie 3, 23–46.

    Google Scholar 

  • Wagner, J., 1992, ‘Firm Size, Firm Growth and Persistence of Chance: Testing Gibrat's Law with Establishment Data from Lower Saxony, 1978-89’, Small Business Economics 4, 125–131.

    Google Scholar 

  • Wing, C., K. Chow and M. Fung, 1996, ‘Firm Dynamics of International Joint-ventures in Shanghai's Manufacturing Sector: Testing the Validity of Gibrat's Law’, Journal of Applied Business Research 12(4), 20–27.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Departamento de Economía Financiera y Contabilidad, Facultad de Ciencias Económicas y Empresariales, Universidad de La Laguna, Campus de Guajara, Camino La Hornera, s/n. La Laguna, 38071, Santa Cruz de Tenerife, España (Spain)

    Alicia Correa Rodríguez, Miguel Acosta Molina, Ana L. González Pérez & Urbano Medina Hernández

Authors
  1. Alicia Correa Rodríguez
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Miguel Acosta Molina
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Ana L. González Pérez
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Urbano Medina Hernández
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Rodríguez, A.C., Molina, M.A., Pérez, A.L.G. et al. Size, Age and Activity Sector on the Growth of the Small and Medium Firm Size. Small Business Economics 21, 289–307 (2003). https://doi.org/10.1023/A:1025783505635

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1025783505635

Keywords

Search

Navigation