2.5.1. Firm Size

According to the European Union, the definition of SMEs is shown in Annex I of Commission Regulation (EU) No. 651/2014 of June 17, 2014. The document shows the types of firms based on the number of employees (small: <50 employees; medium: >50 employees) [43]. A large or medium size can help with the PRAC because there is the possibility of obtaining economies of scale, lower risk and the possibility of better and higher performance. Therefore, SMEs can have access to a larger battery of information and capabilities that allow PRAC more easily [44]. In contrast, small firms may be able to facilitate PRAC quickly by having fewer intermediaries or hierarchies. There could be better communication and coordination for PRAC. Furthermore, a smaller firm usually has more informal links to support the adoption of PRAC [44].
