There's something of a snowball effect here, especially in the manufacturing sector (and coincidentally, the most productive mfg companies have been diversifying into services (logistics, warranty mgmt, co-engineering, etc) because it's so much more profitable -- often in the 15-20% gross margin rather than 4-6%), but additionally, just having the working capital and financial leverage that large corporations have helps ensure their continued growth and success. The big have gotten so big that even the small guys wouldn't succeed without somehow also giving money to the big guys. For example, if I'm in Shenzhen and I start a widget factory, it would be hard for me to avoid the influence of Foxconn, for better or for worse. ... Just like further up the food chain, Apple's iPod/iPhone/iPad successes padded the coffers of Foxconn, Jabil, Samsung, TSMC, and others. The "no one was ever fired for choosing IBM" maxim holds true manufacturing, too. :-/