Abstract
This paper provides the first empirical examination of the relationship between the application of flexible technologies and the firm-size distribution. In particular, we test the hypothesis that implementation of flexible technologies has tended to promote small firms more than large firms. Based on a sample of 36 engineering industries and using two distinct time periods between 1976 and 1986 and two different measures of what constitutes a small firm, we find that the application of certain flexible technologies, such as numerically controlled machines, has led to an increased presence of small firms, while the use of other flexible technologies, such as programmable robots, is associated with a decreased presence of small firms over time.
Similar content being viewed by others
References
Acs, Zoltan J. and David B.Audretsch, 1987, ‘Innovation, Market Structure, and Firm size’,Review of Economics and Statistics 69, 567–575.
Acs, Zoltan J. and David B.Audretsch, 1988, ‘Innovation in Large and Small Firms: An Empirical Analysis’,American Economic Review 78, 678–690.
Acz, Zoltan J. and David B.Audretsch, 1989a, ‘Entrepreneurial Strategy and the Presence of Small Firms’,Small Business Economics 1(3), 193–214.
Acs, Zoltan J. and David B.Audretsch, 1989b, ‘Small-Firm Entry in U.S. Manufacturing’,Economica 55, 225–256.
Brock, William A. and David S.Evans, 1989, ‘Small Business Economics’,Small Business Economics 1(1), 7–21
Campbell, Duncan C., 1988, ‘Technology, Flexibility of Manufacturing, and Industrial Relations: A Cross-National Review of Literature’, Wharton School, Industrial Research Unit, University of Pennsylvania, Philadelphia.
Carlsson, Bo, 1984, ‘The Development and Use of Machine Tools in Historical Perspective’,Journal of Economic Behavior and Organization 5, 91–114.
Carlsson, Bo. 1987, ‘Manufacturing Technology and U.S. Trade Performance’, paper presented at the European Association for Research in Industrial Economics (EARIE) Conference, Madrid.
Carlsson, Bo, 1989a, ‘The Evolution of Manufacturing Technology and Its Impact on Industrial Structure: An International Study’Small Business Economics 1, 21–38.
Carlsson, Bo, 1989b, ‘Flexibility in the Theory of the Firm’,International Journal of Industrial Organization 7(2), 179–204.
Dasgupta, Partha, 1986, ‘The Theory of Technological Competition’, in J. E.Stiglitz and G. F.Mathewson (eds.),New Developments in the Analysis of Market Structure, Cambridge, MA: The MIT Press.
Dasgupta, Partha and JosephStiglitz, 1980, ‘Industrial Structure and the Nature of Innovative Activity’,The Economic Journal 80, 266–293.
Dodgson, Mark, 1985,Advanced Manufacturing Technology in the Small Firm, London: The Technology Change Center.
Dosi, Giovanni, 1988, ‘Sources, Procedures, and Microeconomic Effects of Innovation’,Journal of Economic Literature XXVI, 1120–1171.
Evans, David, 1987, ‘Tests of Alternative Theories of Firm Growth’,Journal of Political Economy 95, 657–674.
Highfield, Richard and RobertSmiley, 1987, ‘New Business Starts and Economic Activity: An Empirical Investigation’,International Journal of Industrial Organization 5, 51–66.
Judge, George G., E.Griffiths, R.Carter-Hill and Tsoung-Chao-Lee, 1980,The Theory and Practice of Econometrics, New York: John Wiley & Sons.
Mensch, Gerhard, 1979,Stalemate in Technology, Cambridge, MA: Ballinger.
Mills, David E. and LaurenceSchumann, 1985, ‘Industry Structure with Fluctuating Demand’,American Economic review 75, 758–767.
Piore, Michael J., 1980, ‘Technological Foundations of Dualism and Discontinuity’, in SuzanneBerger and Michael J.Piore (eds.),Dualism and Discontinuity in Industrial Societies, Cambridge, MA: Cambridge University Press.
Piore, Michael J., 1986, ‘The Decline of Mass Production and Union Survival in the USA’,Industrial Relations Journal 17, 207–213.
Piore, Michael J. and Charles F.Sabel, 1983, ‘Italian Small Business Development: Lessons for U.S. Industrial Policy’, in JohnZysman and LauraTyson (eds.),American Industry in International Competition, Ithaca NY: Cornell University.
Piore, Michael J. and Charles F.Sabel, 1984,The Second Industrial Divide: Possibilities for Prosperity, New York: Basic Books.
Shepherd, William G., 1982, ‘Causes of Increased Competition in the U.S. Economy, 1939–1980’,Review of Economics and Statistics 64, 613–626.
Solo, Robert, 1985, ‘Across the Industrial Divide: A Review Article’,Journal of Economic Issues 19, 829–837.
White, Lawrence J., 1982, ‘The Determinants of the Relative Importance of Small Business’,Review of Economics and Statistics 64, 42–49.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Acs, Z.J., Audretsch, D.B. & Carlsson, B. Flexible technology and firm size. Small Bus Econ 3, 307–319 (1991). https://doi.org/10.1007/BF01840612
Accepted:
Issue Date:
DOI: https://doi.org/10.1007/BF01840612