Proceedings of the 19th International Symposium on Management (INSYMA 2022)

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The Impact of Firm Size and Market Concentration on Firm Productivity

Evidence from Indonesian Manufacturing

Authors
Suyanto Suyanto1, *, Yenny Sugiarti1, Cynthia Yohanna Kartikasari1
1Universitas Surabaya, Surabaya, Indonesia
*Corresponding author. Email: suyanto@staff.ubaya.ac.id
Corresponding Author
Suyanto Suyanto
Available Online 5 December 2022.
DOI
10.2991/978-94-6463-008-4_146How to use a DOI?
Keywords
Firm size; market concentration; productivity; Indonesian manufacturing
Abstract

This study investigates the impact of firm size and market concentration on firm productivity in Indonesian manufacturing. Firm size has been enduring interest in studies on firm productivity as the impact can be positive or negative. On the other hand, market concentration has increasingly been a key concern in evaluating firm productivity. This study used firm-level panel data of 6,783 manufacturing firms (47,481 observations) across 33 provinces of Indonesia. Two methods were applied in estimating the data; those methods were adjusted-autocorrelation OLS and random effect GLS. The results show that firm size has a significant positive effect on firm productivity, indicating that a large-scale firm experiences higher productivity than a small size firm. In addition, market concentration appears to have a negative impact on firm productivity, suggesting that a firm in a more concentrated industry tends to be less productive. The implication of this study suggests that a firm produces on a large scale and competes in a less concentrated market.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 19th International Symposium on Management (INSYMA 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
5 December 2022
ISBN
978-94-6463-008-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-008-4_146How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Suyanto Suyanto
AU  - Yenny Sugiarti
AU  - Cynthia Yohanna Kartikasari
PY  - 2022
DA  - 2022/12/05
TI  - The Impact of Firm Size and Market Concentration on Firm Productivity
BT  - Proceedings of the 19th International Symposium on Management (INSYMA 2022)
PB  - Atlantis Press
SP  - 1186
EP  - 1192
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-008-4_146
DO  - 10.2991/978-94-6463-008-4_146
ID  - Suyanto2022
ER  -