The Effect of Initial Size on the Duration of Small and Medium Manufacturing Enterprises (SMEs)
Subject Areas : Business Management
Houshang Taghizadeh
1
(
Assistant Professor, Department of Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran
)
Ghafar Tari
2
(
Ph.D. Student, Department of Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran
)
Keywords: Survival, Initial Size, duration, Small and Medium Manufacturing Enterprises,
Abstract :
The aim of this paper is to investigate the effect of initial size on the duration of small and medium manufacturing enterprises in Iran through 1361-1385. The Industry & Mine Ministry database has been used for data gathering and the data are analyzed using TDA software. The Kaplan-Meier Product-Limit estimator has been used for exploratory data analysis and the semi-parametric Cox regression model is used to test the hypotheses. The results of this study support the positive and meaningful relationship between initial size and survival. Furthermoer, in this research the survival functions of small and medium firms were compared and we concluded that survival probability of medium firms (with 10 to 99 employees) is greater than that of small firms (with lower than 10 employees).
Agarval, R. & Bayus, B. (2004). Creating and surviving in new industries, Advances in Strategic Management, (21), 107-130.
Audretsch, D. B. (1991). New Firm survival and Technological Regime. The review of Economics and Statistics, 73(3), 441-450.
Audretsch, D. B., & Mahmood, T. (1994). The rate of hazard confronting new firms and plants in U.S. manufacturing,Review of industrial organization, 9(1), 41-56.
Audretsch, D. B., & Mahmood, T. (1995). New firm survival: new results using a hazard function. Review of Economics and Statistics, 77(1), 97-103.
Audretsch, D. B., Santarelli, E. and Vivarelli, M. (1999). Start-up size and industrial dynamics: some evidence from Italian manufacturing. International Journal of Industrial Organization, 17, 965-983.
Blossfeld, H. P., & Rohwer, G. (2002). Techniques of Event History Modeling. Lowrence Erlbaum Associates.
Brostrom, G., Event History Analysis. Department of Statistics, Umea University, Sweden. 2001.
Cressy, R. (1996). Pre-entrepreneurial income, cash-flow growth and survival of startup businesses: model and tests on U.K. data. Small Business Economics, (8), 49-58.
Delmar, F., & Shane, S. (2004). Legitimating first: organizing activities and the survival of new ventures. Journal of Business Venturing, 19, 385-410.
Dollinger, M. J. (1999). Entrepreneurship: Strategies and Resources. Translated by: D., Richard, Irwin: Homewood Publication.
Dunne, T., Roberts, M. J., & Samuelson, L. (1988). Patterns of firm entry and exit in US manufacturing industries. Rand Journal of Economics, 19(4), 495-515.
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Fritsch, M., Brixy, U., & Falck, O. (2003). The Effect of Industry. Region and Time on New Business Survival- A Multi-Dimensional Analysis.
Ghareh Che, M. (1998). Small Industries and their Role in the Economy of the Countries. Tehran: Institute for Labor and Social Work, (In Persian).
Holmes, P., Stone, I., & Braidford, P. (1999). An Analysis of New Firm Survival using a Hazard Function.
Huyghebaert, N. (2000). New Firm Survival: The Effect Of Start-Up Characteristics. Journal of Business Finance & Accounting, 27(5&6), 627-651.
Imani Rad, M. (1994). The Role of Small Industries in the Process of Economic Development, Seminar papers on the role and position of small industrial units in the country's socio-economic development. Tehran: Institute for Educational Studies and Planning, (In Persian).
Jovanovic, B. (1982). Selection and Evolution of Industry. Econometrica, 50, 649-670.
Khaki, Gh. (1994). Comparison of Information Systems in Small and Large Industries; Seminar papers on the role and position of small industrial units in socio-economic development of the country. Tehran: Institute for Educational Studies and Planning of Gostaresh Organization, (In Persian).
Lawrence, Anthony B., & Marks, R. E. (2000). Duration Analysis in the Australian Coal Industry. Working Paper.
Mahmood, T. (1997). Survival of Newly Founded Businesses: A Log-Logistic Model Approach. Discussion Paper.
Mata, J., & Portugal, P. (1994). Life duration of new firms. Journal of Industrial Economics, 42(3), 227-246.
Mata, J., Portugal, P., & Guimaraes, P. (1995). The survival of new plants: start-up conditions and post-entry evolution. International Journal of Industrial Organization, 13(4), 459-482.
Mirabbasvand, S. A. (1994). Small Industries, the First Step in Industrial Development. The role and position of small industrial units in socio-economic development of the country, (In Persian).
Mueller, D. C. (1990). The Dynamics of Company Profits: An International Comparison. Cambridge: Cambridge University Press.
Persson, H. (2002). The Survival and growth of new establishments in Sweden, 1987-1995. Stockholm University.
Sharif Al-Nasbi, S. M. (1994). Effective Strategies and Policies for Industrial Development and the Position of Small Industries for Development Purposes; Proceedings of the Seminar on the Role and Position of Small Industrial Units in the Socio-Economic Development of the Country. Tehran: Institute for Educational Studies and Planning of Gostaresh Organization, (In Persian).
US Small Business Administration. (1987). Office of Advocacy. Small Business Data Base.
Zahouri, Gh. (1999). Application of Research Methods in Social Sciences in Management. Tehran: Mir Publishing, (In Persian).
Zoltan, J. X. (2002). The Role of Small Industries in Modern Economics. Translated by: M., Jahangir, Tehran: Rasa Cultural Services, (In Persian).
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Agarval, R. & Bayus, B. (2004). Creating and surviving in new industries, Advances in Strategic Management, (21), 107-130.
Audretsch, D. B. (1991). New Firm survival and Technological Regime. The review of Economics and Statistics, 73(3), 441-450.
Audretsch, D. B., & Mahmood, T. (1994). The rate of hazard confronting new firms and plants in U.S. manufacturing,Review of industrial organization, 9(1), 41-56.
Audretsch, D. B., & Mahmood, T. (1995). New firm survival: new results using a hazard function. Review of Economics and Statistics, 77(1), 97-103.
Audretsch, D. B., Santarelli, E. and Vivarelli, M. (1999). Start-up size and industrial dynamics: some evidence from Italian manufacturing. International Journal of Industrial Organization, 17, 965-983.
Blossfeld, H. P., & Rohwer, G. (2002). Techniques of Event History Modeling. Lowrence Erlbaum Associates.
Brostrom, G., Event History Analysis. Department of Statistics, Umea University, Sweden. 2001.
Cressy, R. (1996). Pre-entrepreneurial income, cash-flow growth and survival of startup businesses: model and tests on U.K. data. Small Business Economics, (8), 49-58.
Delmar, F., & Shane, S. (2004). Legitimating first: organizing activities and the survival of new ventures. Journal of Business Venturing, 19, 385-410.
Dollinger, M. J. (1999). Entrepreneurship: Strategies and Resources. Translated by: D., Richard, Irwin: Homewood Publication.
Dunne, T., Roberts, M. J., & Samuelson, L. (1988). Patterns of firm entry and exit in US manufacturing industries. Rand Journal of Economics, 19(4), 495-515.
Feizpour, M. A. (1983). The Role of Skill On Survival Of Manufacturing SMEs in IRAN. 1st National Conference Proceeding: The Role of Technical & Vocational Training in Economic and Social Changes, Mazandaran.
Fritsch, M., Brixy, U., & Falck, O. (2003). The Effect of Industry. Region and Time on New Business Survival- A Multi-Dimensional Analysis.
Ghareh Che, M. (1998). Small Industries and their Role in the Economy of the Countries. Tehran: Institute for Labor and Social Work, (In Persian).
Holmes, P., Stone, I., & Braidford, P. (1999). An Analysis of New Firm Survival using a Hazard Function.
Huyghebaert, N. (2000). New Firm Survival: The Effect Of Start-Up Characteristics. Journal of Business Finance & Accounting, 27(5&6), 627-651.
Imani Rad, M. (1994). The Role of Small Industries in the Process of Economic Development, Seminar papers on the role and position of small industrial units in the country's socio-economic development. Tehran: Institute for Educational Studies and Planning, (In Persian).
Jovanovic, B. (1982). Selection and Evolution of Industry. Econometrica, 50, 649-670.
Khaki, Gh. (1994). Comparison of Information Systems in Small and Large Industries; Seminar papers on the role and position of small industrial units in socio-economic development of the country. Tehran: Institute for Educational Studies and Planning of Gostaresh Organization, (In Persian).
Lawrence, Anthony B., & Marks, R. E. (2000). Duration Analysis in the Australian Coal Industry. Working Paper.
Mahmood, T. (1997). Survival of Newly Founded Businesses: A Log-Logistic Model Approach. Discussion Paper.
Mata, J., & Portugal, P. (1994). Life duration of new firms. Journal of Industrial Economics, 42(3), 227-246.
Mata, J., Portugal, P., & Guimaraes, P. (1995). The survival of new plants: start-up conditions and post-entry evolution. International Journal of Industrial Organization, 13(4), 459-482.
Mirabbasvand, S. A. (1994). Small Industries, the First Step in Industrial Development. The role and position of small industrial units in socio-economic development of the country, (In Persian).
Mueller, D. C. (1990). The Dynamics of Company Profits: An International Comparison. Cambridge: Cambridge University Press.
Persson, H. (2002). The Survival and growth of new establishments in Sweden, 1987-1995. Stockholm University.
Sharif Al-Nasbi, S. M. (1994). Effective Strategies and Policies for Industrial Development and the Position of Small Industries for Development Purposes; Proceedings of the Seminar on the Role and Position of Small Industrial Units in the Socio-Economic Development of the Country. Tehran: Institute for Educational Studies and Planning of Gostaresh Organization, (In Persian).
US Small Business Administration. (1987). Office of Advocacy. Small Business Data Base.
Zahouri, Gh. (1999). Application of Research Methods in Social Sciences in Management. Tehran: Mir Publishing, (In Persian).
Zoltan, J. X. (2002). The Role of Small Industries in Modern Economics. Translated by: M., Jahangir, Tehran: Rasa Cultural Services, (In Persian).
