Firm Growth, Size, Age and Behavior in Japanese Manufacturing

Firm Growth, Size, Age and Behavior in Japanese Manufacturing This paper investigates the relationship between firm growth and firm size, firm age and firm behavior, such as R&D activity and subcontracting, based on the data of nearly 14,000 Japanese manufacturing firms. “The stylized facts” that firm size and age have a negative effect on firm growth are confirmed in the case of Japanese manufacturing firms. Also, a firm’s survivability rises with its size and age. R&D expenditure per employee has a significant positive effect on firm growth, which justifies the argument made by Hall (1987). Although subcontracting to only one company has no significant effect on firm growth, it has a significant positive effect on a firm’s survivability. In addition, subcon-tracting firms depending on only one company as a customer are subject to no significant age effects. This possibly suggests that the age effect itself has some relation to the extent of the trade network. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Firm Growth, Size, Age and Behavior in Japanese Manufacturing

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Publisher
Springer Journals
Copyright
Copyright © 2005 by Springer Science + Business Media, Inc.
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-005-7568-y
Publisher site
See Article on Publisher Site

Abstract

This paper investigates the relationship between firm growth and firm size, firm age and firm behavior, such as R&D activity and subcontracting, based on the data of nearly 14,000 Japanese manufacturing firms. “The stylized facts” that firm size and age have a negative effect on firm growth are confirmed in the case of Japanese manufacturing firms. Also, a firm’s survivability rises with its size and age. R&D expenditure per employee has a significant positive effect on firm growth, which justifies the argument made by Hall (1987). Although subcontracting to only one company has no significant effect on firm growth, it has a significant positive effect on a firm’s survivability. In addition, subcon-tracting firms depending on only one company as a customer are subject to no significant age effects. This possibly suggests that the age effect itself has some relation to the extent of the trade network.

Journal

Small Business EconomicsSpringer Journals

Published: Jan 1, 2005

References

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