The word 小型 is formed by directly combining two independent characters: 小 (xiǎo), meaning "small", and 型 (xíng), meaning "type", "model", or "form". It is a conceptual fusion where the first character descriptively modifies the second, creating a new, single unit of meaning that conveys the idea of "a small type" or "small-sized". This follows a fundamental and intuitive Chinese word-formation principle of placing a descriptive element before the core substantive element it qualifies, resulting in a compound that functions as a single adjective.