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Spatial disparities in SME productivity: evidence from the service sector in England

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  • Pattanapong Tiwasing
  • Yoo Ri Kim
  • Temitope Akinremi

Abstract

This paper identifies the key determinants of spatial variability of productivity, focusing on small and medium-sized enterprises (SMEs) in the service sector across England. Due to the hierarchically structured data, multilevel analysis is applied to distinguish the effects of a firm’s internal variables and (sub)regional factors on productivity. Using cross-sectional data for 10,400 SMEs from the UK government’s Small Business Survey, 2015, the results show that firm-specific determinants significantly influence productivity. The findings also indicate that location, local enterprise partnerships (LEPs) and where firms operate play a pivotal role in determining SME productivity. In particular, at the LEP level, increasing labour supply, promoting local funding and improving broadband speed potentially enhance firm productivity.

Suggested Citation

  • Pattanapong Tiwasing & Yoo Ri Kim & Temitope Akinremi, 2020. "Spatial disparities in SME productivity: evidence from the service sector in England," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 7(1), pages 589-602, January.
    • Handle: RePEc:taf:rsrsxx:v:7:y:2020:i:1:p:589-602
    DOI: 10.1080/21681376.2020.1854111
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    Cited by:

    1. Pattanapong Tiwasing, 2021. "Social media business networks and SME performance: A rural–urban comparative analysis," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1892-1913, September.
    2. Pattanapong Tiwasing & Lorna Pate & Jenny McMillan & Jane Atterton & Steven G. Thomson, 2023. "Exploring the Determinants of the Relationships between the Land-Based Sectors with the Wider Rural Business Base in Scotland: An Empirical Analysis," Land, MDPI, vol. 12(3), pages 1-24, March.

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