Extract
Technological opportunity and the growth process of firms.
ABSTRACT
The question of whether the growth process of firms is best explained by identifiable systematic influences, or by an essentially random process, is an important one in the literature on market structure. Within this context, the issue of whether firm size has a systematic influence on the growth rate of a firm has been the subject of extensive empirical studies. This paper attempts to re-examine the firm's size-growth relationship using data on large firms in the USA over the 1994-2000 period. The overall empirical results emanating from this study point to a tendency for the smaller firms to grow faster, and this tendency is stronger for industries facing greater technological opportunity. 1. INTRODUCTION Is the growth process of firms best explained by identifiable systematic influences, or is it essentially a random process? Numerous studies have dealt with this empirical issue which was first addressed by...See the full content of this document
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