Does a U-shaped relationship exist between performance and size threshold? The evidence from Taiwan biotech industry

Shiu Wan Hung, Chiao Ming Li, Ming Yi Shen

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

The aim of this paper is to analyze different size threshold structures of firm productivity on business performance by employing a panel of 40 Taiwanese biotech industry firms over the period 2008–2017. Whereas size expansion and performance have an inverted U-shaped relationship, the results show that size expansion is negative for business performance. We find that the productivity of individual firms has different effects, in which we observe that most small-size firms and large-size firms between heterogeneity of the impact of the performance, productivity and innovation and show that large-size firms' productivity and innovation capability are lower than those of small-size firms. For management policy, we recommend that large-size firms strengthen their management of productivity and innovation capabilities and actively improve the performance of productive forces and enhance the contribution of innovation.

Original languageEnglish
Article number101147
JournalTechnology in Society
Volume58
DOIs
StatePublished - Aug 2019

Keywords

  • Innovation
  • Inverted U-Shaped relationship
  • Management policy
  • Non-linear model
  • Productivity
  • Size threshold

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