The two views of small firms in industry dynamics: a reconciliation

Recent empirical studies show that small firms are confronted with a lower likelihood of survival than their larger counterparts. An alternative view is that small firms can overcome inherent size disadvantages by occupying strategic niches. This paper offers empirical evidence in the context of product life-cycles suggesting that the relationship between firm size and the likelihood of survival is shaped by the stage of the industry life-cycle, and that both views of small firm survival relative to large firms are correct. (C) 1999 Elsevier Science S.A. All rights reserved.