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ICC Advance Access originally published online on June 30, 2005
Industrial and Corporate Change 2005 14(4):617-638; doi:10.1093/icc/dth066
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Right arrow L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
Right arrow L25 - Firm Performance: Size, Diversification, and Scope
Right arrow L63 - Microelectronics; Computers; Communications Equipment
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© The Author 2005. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.

Relative size and firm growth in the global computer industry

Matthew S. Bothner

Correspondence: Matthew S. Bothner University of Chicago Graduate School of Business 5807 South Woodlawn Avenue Chicago, IL 60637 matt.bothner{at}gsbfac.uchicago.edu.

This article examines the effect of relative size on rates of firm growth. Although a number of prior studies have sought to pinpoint the effect of firm size on future growth, such efforts have been focused almost exclusively on absolute size, thereby neglecting the ways in which a firm’s scale advantages with respect to its competitors may independently determine its performance. This study extends recent work in network analysis, strategy and organizational ecology by developing a localized measure of relative size and showing that relative size has a strong positive effect on future growth, net of absolute size. Implications for future research are discussed.


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