Flexibility, Firm-Specific Turbulence and the Performance of the Long-lived Small Firm

B-Tier
Journal: Review of Industrial Organization
Year: 2005
Volume: 26
Issue: 4
Pages: 415-443

Authors (2)

Bernadette Power (not in RePEc) Gavin Reid (University of St. Andrews)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The hypothesis that flexibility enhances the long run prospects of the small firm is explored by examining precipitating causes of organizational change within it, and consequential adjustments. The study is fieldwork based and uses evidence gathered directly from entrepreneurs. New measures of flexibility and firm-specific turbulence are used to explain long-run performance, measured over 28 distinct attributes. Econometric estimates (using GLS and Heckman selectivity correction) are reported, on the relationship between flexibility, firm-specific turbulence and performance. Firm-specific turbulence is shown to have a negative effect on performance, but the latter is enhanced by increasing the flexibility of the small firm. Copyright Springer 2005

Technical Details

RePEc Handle
repec:kap:revind:v:26:y:2005:i:4:p:415-443
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-29