How small software development team can deliver more then a larger team?

In this post I would like to gather some practical evidence that smaller teams can be no less efficient then bigger teams.

In his presentation about kanban system Jim Benson says:
“And one of our teams I can’t name yet, because they told me I can’t yet, so I call them x77d, they also got tons of money. And they staffed way up and they got all these offshore teams in India and they blasted forward and two years later they had produced absolutely nothing. And during the last year of those two years they spent the whole time fighting about what their processes should be. We are not doing Scrum right, we are not doing this right, we are not doing that right and they are fighting back and forth. So then they went back for their next round of funding and much like Info Move the V.C. said ‘dude you didn’t do anything’. So they laid off everybody but 12 people and six months later they had a working system.”

You need to fast foward to 49th minute of his presentation to hear him talking about that.