Determinants of technical efficiency in small firms

Alvarez, Roberto and Crespi, Gustavo (2003) Determinants of technical efficiency in small firms. Small Business Economics, 20. pp. 233-244.

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There is evidence that small firms are less productive than larger ones. This phenomenon could be explained by several factors. In this paper, using plant survey data and non-parametric deterministic frontier methodology, we explore what factors can explain the observed differences in technical efficiency. In the case of Chilean manufacturing firms, we found that efficiency is positively associated with the experience of workers, modernization of physical capital and innovation in products. In contrast, other variables such as outward orientation, owner education and participation in some public programs do not affect the efficiency of the firms.

Item Type: Article
Schools and Departments: University of Sussex Business School > SPRU - Science Policy Research Unit
Depositing User: EPrints Services
Date Deposited: 06 Feb 2012 19:26
Last Modified: 02 Apr 2012 15:35
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