FIRM SIZE & SUSTAINABLE PERFORMANCE Dr. Asish Kumar Panda Faculty in Strategic Management area Department of Management Studies Nalsar University of Law, Justice City, Shameerpet, Hyderabad 500101, Telangana, India. Mob: +91-7978327172 WhatsApp +91-9861227022 E-mail: asish@nalsar.ac.in Abstract This paper looks at firm size and its history in terms of policy level requirements for control and facilitation. It further looks at literature in terms of relationship between firm size and performance. It then reviews literature on concepts of sustainability and any relationship with firm design parameter like size. Keywords: Size, Performance, Sustainability, Firm, Design There are various design parameters for firm which have a bearing on performance. This paper looks at various literature and probes further on possible relationship between firm size and sustainable performance. Concept of Firm Size The firm size concept dates back to the history of competition law where governments attempted to regulate competitive markets for goods and services to avoid cartels, monopolies and restrictive trade practices. These efforts were made to restrict the firm size so as to avoid a monopolistic foothold by any trader or cartel of traders to the detriment of consumers’ interest (Mehta, 2011). In India, Chanakya’s Arthashastra (400 BC) speaks about cartels existing in trade (Kumar, 2012). The earliest example Lex Julia de Annona enacted by Romans around 50 BC where corn trade was protected through imposition of heavy fine to anyone who directly or deliberately stops supply ships with an intention of increase in price. In 301 AD even death penalty was imposed upon traders who intentionally created scarcity (Garnsey, 1967). Roman emperors brought further regulations through constitutional enactments for which evidences are available for 483 AD (Constitution of Zeno) and Florentine Municipal laws of 1322 and 1325. Wenceslas II of Bohemia formulated various legislations from 1283 to 1305 to prevent cartel within ore traders forcing price increase. Henry III passed an Act in England in 1266 to regulate bread and ale price by avoiding cartels and large monopolistic enterprise taking advantage of food shortage (Ages, 1985). During the period of Black Death Edward III enacted Statute of Labourers in 1349 to restrict higher wages charged by workmen due to labour shortage in England (Webb & Webb, 1904). Due to flourish of international trade, many changes were noticed in Europe around 15th century and in 1561 a system of Industrial Monopoly license was introduced which is similar to modern day patents which granted exclusive rights to certain licensed group to produce a particular set of items (Acemoglu et al). This was abused regularly to create shortage and enhance the price of commodities and the courts in England finally made all these grants void as this lead to price increase, quality decrease and made many workers idle. King James I started granting them again from 1623 by excluding patent rights and guilds from prohibition. From King Charles I to King Charles II it continued and used to raise revenue for governance and fighting war through granting rights. In 1684 it was decided in courts to grant exclusive rights to only large and powerful companies to trade overseas (Posner, 1975). However due to increasing coal prices as a result of cartels in Newcastle coal companies which resulted in product cost for many core industries, a new law was passed in 1710 to prevent monopoly restricting size of coal producers. Adam Smith in his famous book “The Wealth of Nations” in 1776 advocated for division of AEGAEUM JOURNAL Volume 8, Issue 6, 2020 ISSN NO: 0776-3808 http://aegaeum.com/ Page No: 943