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| Author: | Bercovitz, J. Mitchell, W. |
| Title: | When more is better? The impact of business scale and scope on long-term business survival, while controlling for profitability |
| Journal: | Strategic Management Journal
2007 : JAN, VOL. 28:1, p. 61-79 |
| Index terms: | economies of scale organizational size USA |
| Freeterms: | medical sector |
| Language: | eng |
| Abstract: | It is shown by research that larger firms and businesses tend to survive longer than small ones. It is argued by Bercovitz and Mitchell business scale and business scope each enhance long term survival, independent of organizational routines, baseline profitability or external ties. They also argue that multi-product businesses with interactive effects of depth and breadth have the greatest benefits of scale. The study is based on data from 618 firms having operated in the U.S. medical sector from 1978 to 1995. |
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