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Determinants of technical efficiency in small firms
journal contributionposted on 2023-06-07, 22:54 authored by Roberto Alvarez, Gustavo Crespi
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.
JournalSmall Business Economics
Department affiliated with
- SPRU - Science Policy Research Unit Publications
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