The size of the company plays a crucial role in its performance

Abstract

This research aims to examine the relationship between firm size and performance, a central issue for managers and researchers in organizational strategy. The main question explored is: to what extent does the size of a company influence its performance indicators such as innovation, competitiveness, and operational efficiency? This study focuses particularly on the mechanisms through which size acts as either a lever or a constraint in various economic contexts. The methodology implemented is based on an empirical study conducted with a diversified sample of companies, including small and medium-sized enterprises (SMEs), large organizations, and multinational corporations. The findings reveal that large firms benefit from economies of scale, better access to resources, and increased competitiveness. However, their more complex bureaucracy sometimes limits their adaptability and capacity for innovation. Conversely, small firms, due to their agility and responsiveness, are better positioned to adapt to market dynamics and foster innovation. Nevertheless, they face challenges such as limited access to resources and financial vulnerability. These results also pave the way for future research on the interactions between size, organizational culture, and innovation.

Classification JEL: M41

Paper type: Empirical Research