Searcher

Scaling without mass: a model to foster SMEs' growth and productivity

Published on Monday, January 13, 2020 | Updated on Monday, January 13, 2020

Scaling without mass: a model to foster SMEs' growth and productivity

The New Digital Economy (mobile internet and cloud use) has the potential to transform the way in which SMEs combine capital and labor to obtain improvements in productivity levels, so that size could no longer be a limitation under this scenario.

Key points

  • Key points:
  • Traditionally, both theory and empirical evidence have suggested that a larger size of firms favours productivity determinants such as efficiency or innovation, thus generating higher levels of productivity in larger firms
  • The New Digital Economy involves moving away from investment in ICT capital goods in favour of access to this technology through payment for services on demand.
  • The digital transformation could facilitate innovation, promote competition, and improve efficiency and flexibility, regardless of the size of the company.

Geographies

Topics

Has this information been useful?

New comment

Be the first one to add a comment

Load more

You may also be interested in