Fan Industry of Pakistan: Growth Dynamics of Small, Medium and Large Enterprises

Wahga, Aqueel Imtiaz; Rahim, Eric; Aftab, Khalid; Ahson, Uzair and Aslam, Raees (2010). Fan Industry of Pakistan: Growth Dynamics of Small, Medium and Large Enterprises. Allied Press Pvt. Limited, 26 Shahrah-e-Quaid-e-Azam, Lahore, Pakistan, Pakistan.


Executive Summary

This research report ‘Fan Industry of Pakistan: Growth Dynamics of Small, Medium and Large Enterprises’ explores the various dimensions of growth dynamics of small, medium and large size firms in this specific industry. The fan industry landscape is, as typical of a developing economy, full of inter-firm resource heterogeneity and ‘technological dualism’, where larger, and some medium scale enterprises use more modern methods of production and business, and the small scale firms reply upon the traditional processes. Based on the information and data gathered through field surveys, this research attempted to formally analyse the pattern and determinants of the performance of fan making firms. The information and data comprised of various dimensions of entrepreneurial competence, business operation, skill sets, technological capabilities, as well as input-output dynamics. Starting from the development of industry specific classifications of firm sizes, based on number of workers, output range, number and types of machines, the research has analysed various issues related with firm performance across and within firms of different sizes. Other characteristics of firms like targeted income groups, types of markets (local and/or international), outsourcing practices, product diversification, R&D practices, product testing, nature and sources of skills acquisition, technological upgradation, over-time and advertisement practices have also been used for deeper and broader evaluation of industry and firm-size specific dynamics. The research has contributed to literature in terms of its industry specific findings, and also by developing an estimate of ‘growth orientation’ of different sized firms and their determinants. A low-growth oriented firm is characterised by fewer intentions and actions to expand vis-à-vis a more growth oriented firm. The how and why questions of this growth orientation have been dealt with in detail. One important general findings is that firms with higher growth orientation are more active in terms of investment, technological up-gradation, certifications, and product diversification. They usually analyse key factors shaping the demand and production processes etc. formally, though with less sophisticated methods and techniques. On the other hand, low growth oriented firms lack the relevant resources and hence are unable to overcome the barriers to growth. The resource heterogeneity hints towards what is often referred to as ‘technological dualism’ within the industry. The real challenge for any policy for technological up-gradation and also for skill development, at firm and industry levels, is to address this issue effectively. It is hoped that the further research may discover new horizons in our understanding of the SMEs in Pakistani context.

Viewing alternatives

Download history

Item Actions