Effect of Input Factors on the Firm-Level Total Productivity: A Comparitive Analysis Between Large and Small Size of Korean Manufacturing Firm

This study seeks to explore a practical model for firm-level productivity measurement and management. It is important to know the magnitude of influence to the total productivity by the managerial decision making which will change the level of input factors. Considering firm as a system, this study adopts the Cobb-Douglas type production function to reveal the production situation of the firm. Managerial decision making would change the production input factors. And the change of total productivity by the effect of managerial decision making could be predicted. By analysing the coefficients of the input factors, this paper provides some information of the qualitative difference between the management of large and small size manufacturing firm