Market Share, Scale, and Market Value: An Empirical Study of Small Closely Held Manufacturing Firms
Abstract This study examines the impact of the interaction of the firm variables market share and scale, and the industry conditions of concentration and growth, on the market value of 225 closely held, micro-market share manufacturing firms. The results suggest that the market value of small firms with micro-market shares benefits from the presence of large firms in concentrated industries. The study also found support for the hypothesis that the impact of concentration and scale economies on small-firm performance varies according to industry growth.