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I did come across a lot of material while doing research for the DQ that states the CMM model works better in larger organizations as opposed to smaller organizations that may use an agile development process. What are your thoughts?

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Answer:

I generally agree. Agile things like Scrum may be more suited to a smaller org's needs considering things aren't quite as set as with big organizations. (They may yet need to change/adapt, where big orgs are normally static for better or worse).

Someone could even successfully integrate both of these but in the end it comes down to not only size but your product/service(s) and what customer needs are.

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