>Larger firms are on average more productive than smaller ones Do you have any references for this that demonstrate it empirically? Theoretically, larger firms

>Larger firms are on average more productive than smaller ones Do you have any references for this that demonstrate it empirically? Theoretically, larger firms have economies of scale, but they also run into the same internal coordination/incentive problems that communist countries do, due to internal resource allocation being driven by internal politics rather than a market. I.e. command economies (and the average corporation is a command economy internally) face diseconomies of scale.