Small teams are more effective. The general agreement is that anything from 5 to 12 is the ‘right’ small. But of course small teams will also have ‘small’ throughput – relatively speaking. So if your demand is X and the throughput of a small team is X/10, you probably need 10 teams to meet that demand. But more teams also mean more effort to coordinate and align their efforts in the same direction. So, the challenge is how to harness the power of small teams and yet orchestrate multiples of them to get higher throughput.
In the context of enterprise Agile, this is very critical.