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• Παπαδόγγονας, Θεόδωρος
• Δρουκόπουλος, Βασίλης

Empirical studies in Industrial Economics have shown that most industries are characterized by the co-existence of a small number of large firms and a large number of small firms. According to a recent line of thought, the theory of strategic niches, small firms do not directly compete with large firms but prefer to occupy fringe markets, where they can achieve high profits. In this paper we test this hypothesis by comparing the relative specialization of small and large firms (measured by a novel variation of the well-known Balassa index) in Greek manufacturing. The results suggest that, contrary to the above-mentioned theory, on average it is large firms that choose to produce in product niches, and this is especially noticeable in industries with low concentration.

• Economics and Business
• Computer and information sciences

• Industries
• Economics
• Statistics

strategic niches, large-small firms

Περιέχει πίνακες, σημειώσεις και βιβλιογραφία, The authors gratefully acknowledge helpful discussion and comments with Professors George Krimpas and Stavros Thomadakis and an anonymous referee. The usual disclaimer applies; remaining errors are, of course, our own. The work for this paper was supported by the “Special Account for Research Grants” of the University of Athens., JEL Classification: L11