Small business performance: Seeking efficiency through knowledge based networks

Abstract

This paper uses Data Envelopment Analysis (DEA) in order to examine 252 small foreign owned equities operating in the Greek manufacturing sector. By using a number of essential factors (like the number of employees, intangible and tangible assets, foreign ownership, sales and number of recorded partners) we determine the performance of Small Size Enterprises (SSEs) in input-output models. The paper examines also the effect of knowledge-based networks on SSEs' efficiency. The empirical results support the view that the larger the network in which the SSEs belong to, the higher it will be their efficiency due to knowledge and resource sharing.