RT info:eu-repo/semantics/article
T1 Are SMEs less efficient? A Bayesian approach to addressing heterogeneity across firms
A1 Arbelo Pérez, Marta
A1 Arbelo Álvarez, Antonio Manuel
A1 Pérez Gómez, María del Pilar
A2 Dirección de Empresas e Historia Económica
A2 Grupo de investigación: Eficiencia y ventaja competitiva.
Instituto de investigación: Instituto Universitario de la Empresa (IUDE).
K1 SMEs
K1 Profit efficiency
K1 Heterogeneity
K1 Bayesian estimation
K1 Manufacturing industry
AB Empirical evidence shows that large firms are generally more efficient than small and medium-sized firms. Empirical tests have evaluated cost efficiency while assuming homogeneity among firms and mainly examined the size-efficiency relationship in a hypothetical average firm. However, in practice, firms have different resources for multiple reasons and are therefore heterogeneous. This paper uses the concept of profit efficiency to study size-efficiency relationships in individual firms while assumingheterogeneity among firms. For this purpose and in contrast to the traditional approach, we estimate a stochastic frontier model with randomcoefficients using Bayesian techniques to assess the differences in profit efficiency between small and large firms in the manufacturing industry in Spain. The results show that the relationship between efficiency and size heavily depends on the internal properties and characteristics of the firm and environment in which it operates and that there is heterogeneity among firms; ignoring such heterogeneity can lead to an overestimation of inefficiency of 4.92 percentage points. Wealso discuss the implications of these results.
YR 2021
FD 2021
LK http://riull.ull.es/xmlui/handle/915/38736
UL http://riull.ull.es/xmlui/handle/915/38736
LA en
DS Repositorio institucional de la Universidad de La Laguna
RD 19-nov-2024