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SMEs, Institutions, and Performance

SMEs, Institutions, and Performance
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Author(s): Camilla Jensen (University of Nottingham, Malaysia) and Low Mei Peng (Universiti Tunku Abdul Rahman, Malaysia)
Copyright: 2013
Pages: 20
Source title: Enterprise Development in SMEs and Entrepreneurial Firms: Dynamic Processes
Source Author(s)/Editor(s): Nelson Oly Ndubisi (Griffith University, Australia) and Sonny Nwankwo (University of East London, UK)
DOI: 10.4018/978-1-4666-2952-3.ch002

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Abstract

This chapter addresses at the outset the topic of SMEs and economic development from an institutions perspective. The authors argue that the transaction cost theory is not helpful towards understanding the role that institutions play for SME performance for several reasons. Instead, they argue for combining the resource-based theory with an institutions-based approach towards constructing a more practical and empirical oriented analytical framework. After the preliminary discussion and introduction to the different theories used, the authors then take a focus on the analytical framework used to study the relationship between the institution of competition, firm performance, and firm size distributions. This chapter studies the relationship between competition and firm size, whereas subsequent research could also involve the inclusion of other measures of institutions and firm performance.

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