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Small and Big Business

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Document type:
Works
Collection:
Josef Steindl Collection
Title:
Small and Big Business: Introduction [carbon copy of the 2nd revision]
Author:
Steindl, Josef
Scope:
Typoskript, Durchschlag, 21 Blätter, mit handschriftlichen Korrekturen
Year of publication:
1978
Source material date:
[04.1978]
Note:
Das Typoskript stellt die zweite Überarbeitung der 1972 neu verfassten Einleitung zu "Small and Big Business" (1945) vermutlich zwecks der spanischen Ausgabe des Buches dar. Die erste Seite enthält mit Bleistift festgehaltenen Seitenangaben, wo Korrekturen vorgenommen wurden.
Topic:
Firm and market structure
JEL Classification:
D24 [Production, Cost, Capital, Capital, Total Factor, and Multifactor Productivity, Capacity] D43 [Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection] L11 [Production, Pricing, and Market Structure, Size Distribution of Firms]
Shelfmark:
S/M.3.10
Rights of use:
Free access In Copyright
Access:
Free access
DOI:
https://doi.org/10.48671/nls.js.AC14446393

Full text

16 
A second reason why the biggest concerns may have lower profit 
rate is that they may be less efficient and, especially, less 
innovative than others for reasons of internal organisation. 
They tend to be overconfident as a result of a successful past, 
and to become rigid due to traditions and routine which again 
is^fostered by a history of success. 
f 
I think this factor is more important than other more con 
ventional diseconomies. In this book I played down dis 
economies too much, and this was an error. In principle it 
must be recognized that the growth of the firm leads to serious 
inconvenience. The mere geographical size of the market increases, 
and with it cost of transport to the easterner. The plant itself 
covers more space, therefore there is more internal transport. 
Much more important, with the increase in the nuraber of people 
cooperating the difficulties of communication between them 
increase disproportionately.This leads to increasingly 
diversified hierarchical structures designed to save communication 
lines and to loss in efficiency. 
The computer is a grafct help in improving communication, and 
therefore it is a boon to the very big firms. 
10) H.A. Simon, Decision Making and Operational Design. 
J.Ü. March and H.A. Simon, The Dysfunction of Bureaucracy. 
ins Organisation Theory. Ed. Pugh, Penguin Books 1971.
	        

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Steindl, J. (1978). Small and Big Business: Introduction [carbon copy of the 2nd revision]. https://doi.org/10.48671/nls.js.AC14446393
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