Making It Big

Ciani, Andrea; Hyland, Marie; Karalashvili, Nona; Keller, Jennifer; Ragoussis, Alexandros; Tran, Trang Thu

doi:10.1596/978-1-4648-1557-7

Cited by 18 publications

(6 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…These findings are consistent with Jovanovic's (1982) theory of noisy selection and indicate that bigger firms experience larger efficiency than smaller ones. Recent evidence by the World Bank supports the key function of firm size in achieving higher efficiency, productivity, and survival rate (Ciani et al 2020), in line with these findings.…”

Section: Empirical Results and Findingssupporting

confidence: 62%

The Effects of Market Concentration, Trade, and FDI on Total Factor Productivity: Evidence from Indonesian Manufacturing Sector

2023

JEM

View full text Add to dashboard Cite

This study empirically examines the effects of exports, imports, market concentration, and foreign direct investment (FDI) on total factor productivity (TFP). We use a sample of 18,002 Indonesian manufacturing firms, categorized according to technology intensity of low, medium, and medium-high over 2010-2014. TFP and its sub-components, e.g., technical efficiency, technological progress, and scale effect, are estimated using a Malmquist Productivity Index (MPI). The estimation results indicate that market concentration, trade, and FDI positively impact technical efficiency and production scale, but reduce technological progress, which inhibits sectoral development. FDI inflows in Indonesia increase technical efficiency but negligibly enhance technological competencies and the scale of operation in recipient sectors. Increasing firm size is crucial in achieving greater productivity. An increase in market concentration has a negative effect on TFP. This negative impact increases as the share of exports, imports, and FDI in the sector intensifies. Investment and export promotion policies should be tailored based on the technology intensity (low, medium, and medium-high) as the effects of FDI and export participation differ across industries.

show abstract

Section: Empirical Results and Findingssupporting

confidence: 62%

The Effects of Market Concentration, Trade, and FDI on Total Factor Productivity: Evidence from Indonesian Manufacturing Sector

2023

JEM

View full text Add to dashboard Cite

show abstract

“…Large firms are more productive than their smaller counterparts, benefiting from size via productivity, scale, and technical change [60]. Still, large firms seem to record lower efficiency, as inputs (resources) management may be more complex to run.…”

Section: Control Variables (Import Material For and Firm Size)mentioning

confidence: 99%

The FDI Spillover Effect on the Efficiency and Productivity of Manufacturing Firms: Its Implication on Open Innovation

Sugiharti

Yasin

Purwono

et al. 2022

Journal of Open Innovation: Technology, Market, and Complexity

View full text Add to dashboard Cite

In this study, we investigated the effects of foreign direct investment (FDI) spillovers on firm production and technical efficiency in Indonesia’s manufacturing sector from 2010 to 2015. We scrutinized three different channels of horizontal spillover, namely, demonstration, technology adoption, and competition channels. We also captured the heterogeneous effect of firms by categorizing them based on their technological intensity (low, medium, or high). Using time-varying stochastic production frontier analysis, we found that manufacturing firms in each technological group benefit from FDI, either from productivity improvement or technical efficiency improvement. High-technology firms mainly benefit from FDI due to their high technological absorption capability. Meanwhile, medium-high and medium-low tech firms increase productivity through the demonstration effect and the technology adoption channel, despite underperforming in technical efficiency. Finally, low-tech firms, which primarily employ unskilled workers, suffer from large inefficiency. We found that increased FDI, combined with improvements in technology absorption capacity, can help revitalize the productivity of low-tech firms. FDI, firm size, and access to foreign inputs all support production effects but have no direct positive impact on firms’ technical efficiency. The results of this study suggest that the government should ensure that domestic firms can absorb the technical capability of a foreign presence. Open innovation can help strengthen foreign–domestic linkages to contribute to growth through the transfer of knowledge, skills, and technologies.

show abstract

“…We find that larger firms show higher TFP than smaller firms in terms of sales. This finding makes sense because larger firms tend to have more advanced technology and access to capital, which minimizes production costs and boosts TFP performance (Charoenrat et al, 2013; Ciani et al, 2020; Toma, 2020). This finding is consistent with the benefits of economies of scale gained by larger firms.…”

Section: Resultsmentioning

confidence: 99%

Gender diversity, foreign direct investment spillovers, and productivity: Unraveling the role of female workers in Indonesia

Yasin,

Harianto,

Teguh Sambodo

et al. 2024

Bus Strat Dev

View full text Add to dashboard Cite

This study investigates the impact of gender diversity on firm productivity following foreign direct investment (FDI) spillover. Using Indonesian firm‐level datasets from 2011 to 2015, we employ gender spillovers to assess women's distinct contributions to labor spillovers, often manifested through their impacts on productivity, knowledge sharing, and innovation. A fixed‐effects estimator using Driscoll and Kraay's standard errors was employed to deal with cross‐sectional dependence. We first examined the intra‐industry spillover effects of FDI, followed by spatial spillovers, to evaluate the influence of one province's productivity changes on neighboring provinces. Our findings reveal significant gender‐driven FDI spillovers in the spatial dimension but not within the sector. The consistent results across subsamples (impacts on domestic firms, Java‐non‐Java Island, feminization degree, and industrial technology intensity) align with theoretical studies that emphasize the influence of geographical proximity on FDI spillovers. No significant intra‐industry spillover effects were observed. Further exploration of informal channels, possibly mediating spillover effectiveness, is recommended to provide insights into the observed sectoral dynamics.

show abstract

Making It Big

Cited by 18 publications

References 0 publications

The Effects of Market Concentration, Trade, and FDI on Total Factor Productivity: Evidence from Indonesian Manufacturing Sector

The Effects of Market Concentration, Trade, and FDI on Total Factor Productivity: Evidence from Indonesian Manufacturing Sector

The FDI Spillover Effect on the Efficiency and Productivity of Manufacturing Firms: Its Implication on Open Innovation

Gender diversity, foreign direct investment spillovers, and productivity: Unraveling the role of female workers in Indonesia

Contact Info

Product

Resources

About