Abstract

This paper deals with the traditional distinction between small — and large-sized firms. First, it points out that this division must be analysed in the theoretical framework of the opposition between the two polar market structures — pure competition or monopoly — and the consequences resulting from the negation of this market structures. This distinction does not simply underline the capacity of small-sized firms to gain from internal economies of scale or innovation processes. It mainly highlights the importance of the industrial organization — internal or external — in the definition of the identity of the firm. It implies the ability of firms or their concentration in district or network units, to manage the consequences of radical and dynamic uncertainty, by means of forward-looking or reactive organizational strategies, both internal and external.

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