Some determinants of small firm ‘presence’ in Indonesia's manufacturing sector

Abstract

The determinants of small firm ‘presence’ in the Indonesian manufacturing sector are investigated using data for eight small industries over eight time periods. Vertical integration, higher productivity and a robust economic environment are factors that determine small firm presence in the Indonesian manufacturing sector. It was also found that economies of scale in management do not have an important role in determining small firm presence and that the activities of cottage firms do not deter the presence of small firms and vice+versa.