On the Re-Emergence of Small Scale Production: The Norwegian Case in International Comparison

On the Re-Emergence of Small Scale Production: The Norwegian Case in International Comparison Several studies on industrial restructuring point to the phenomenon of a changing size structure in many western economies. This article first rewievs international studies along these lines and then analyses developments in Norway from 1970 to 1990. For manufacturing, a pattern similar to those observed in other countries is found: from the middle of the 1970s there has occurred a slight shift from concentration in bigger establishments to growing employment shares in smaller establishments. Detailed analysis furthermore reveals that the shift towards smaller units has occurred in most sectors of manufacturing. When explaining this shift, however, the conclusion is the opposite of popular views emphasising the dynamism of small firms. The data points very clearly to a general industrial decline in Norway as a main explanation for the change in size structure. Rather than being attributed to the strengths of SMEs, the growing share of SMEs may be interpreted as a result of industrial weakness. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

On the Re-Emergence of Small Scale Production: The Norwegian Case in International Comparison

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1998 by Kluwer Academic Publishers
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1023/A:1007947916625
Publisher site
See Article on Publisher Site

Abstract

Several studies on industrial restructuring point to the phenomenon of a changing size structure in many western economies. This article first rewievs international studies along these lines and then analyses developments in Norway from 1970 to 1990. For manufacturing, a pattern similar to those observed in other countries is found: from the middle of the 1970s there has occurred a slight shift from concentration in bigger establishments to growing employment shares in smaller establishments. Detailed analysis furthermore reveals that the shift towards smaller units has occurred in most sectors of manufacturing. When explaining this shift, however, the conclusion is the opposite of popular views emphasising the dynamism of small firms. The data points very clearly to a general industrial decline in Norway as a main explanation for the change in size structure. Rather than being attributed to the strengths of SMEs, the growing share of SMEs may be interpreted as a result of industrial weakness.

Journal

Small Business EconomicsSpringer Journals

Published: Oct 6, 2004

References

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