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Relative size and firm growth in the global computer industry

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  • Matthew S. Bothner

Abstract

This article examines the effect of relative size on rates of firm growth. Although a number of prior studies have sought to pinpoint the effect of firm size on future growth, such efforts have been focused almost exclusively on absolute size, thereby neglecting the ways in which a firm's scale advantages with respect to its competitors may independently determine its performance. This study extends recent work in network analysis, strategy and organizational ecology by developing a localized measure of relative size and showing that relative size has a strong positive effect on future growth, net of absolute size. Implications for future research are discussed. Copyright 2005, Oxford University Press.

Suggested Citation

  • Matthew S. Bothner, 2005. "Relative size and firm growth in the global computer industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(4), pages 617-638, August.
    • Handle: RePEc:oup:indcch:v:14:y:2005:i:4:p:617-638
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    Cited by:

    1. Canarella, Giorgio & Miller, Stephen M., 2018. "The determinants of growth in the U.S. information and communication technology (ICT) industry: A firm-level analysis," Economic Modelling, Elsevier, vol. 70(C), pages 259-271.
    2. Santos, Eleonora & Khan, Shahed, 2018. "Determinant Factors of Pecuniary Externalities," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6(8), pages 180-198.
    3. Michael Fritsch & Michael Wyrwich, 2014. "The Effect of Regional Entrepreneurship Culture on Economic Development - Evidence for Germany," Papers in Evolutionary Economic Geography (PEEG) 1411, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2014.
    4. Javier Changoluisa & Michael Fritsch, 2020. "New Business Formation and Incumbents’ Perception of Competitive Pressure," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(1), pages 165-197, February.
    5. Michael Fritsch & Florian Noseleit, 2013. "Indirect employment effects of new business formation across regions: The role of local market conditions," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 361-382, June.
    6. Chen Ma & Latif Yasir, 2023. "Carrot or Stick? CSR and Firm Financial Performance," Journal of Business Ethics, Springer, vol. 188(2), pages 349-365, November.

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