This paper examines how firm size, as a proxy for performance, is influenced by the concentration of firms with similar inter-industry sales or purchasing patterns. Data for firm size of New York State firms are analyzed as a function of the level of employment of related firms and unrelated firms in the same metropolitan statistical area (MSA), the existence of spatial complexes, firm age, population density and a series of dummy variables to capture the structural difference, if any, across the thirteen MSAs and 20 two-digit SIC categories. Evidence is found to support the hypothesis that industry concentration and employment levels are positively related to firm size, holding age constant, while other sector employment and population density tend to retard firm growth.
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