Here is one more alternate, this is still the legacy approach pointed out by @Andrew in his comments but with extra steps of making your input folder as a buffer to receive small files pushing them to a tmp directory in a timely fashion and merging them and pushing the result back to input.
step 1 : create a tmp directory
hadoop fs -mkdir tmp
step 2 : move all the small files to the tmp directory at a point of time
hadoop fs -mv input/*.txt tmp
step 3 -merge the small files with the help of hadoop-streaming jar
hadoop jar $HADOOP_HOME/share/hadoop/tools/lib/hadoop-streaming-2.6.0.jar \
-Dmapred.reduce.tasks=1 \
-input "/user/abc/input" \
-output "/user/abc/output" \
-mapper cat \
-reducer cat
step 4- move the output to the input folder
hadoop fs -mv output/part-00000 input/large_file.txt
step 5 - remove output
hadoop fs -rm -R output/
step 6 - remove all the files from tmp
hadoop fs -rm tmp/*.txt
Create a shell script from step 2 till step 6 and schedule it to run at regular intervals to merge the smaller files at regular intervals (may be for every minute based on your need)
Steps to schedule a cron job for merging small files
step 1: create a shell script /home/abc/mergejob.sh with the help of above steps (2 to 6)
important note: you need to specify the absolute path of hadoop in the script to be understood by cron
#!/bin/bash
/home/abc/hadoop-2.6.0/bin/hadoop fs -mv input/*.txt tmp
wait
/home/abc/hadoop-2.6.0/bin/hadoop jar /home/abc/hadoop-2.6.0/share/hadoop/tools/lib/hadoop-streaming-2.6.0.jar \
-Dmapred.reduce.tasks=1 \
-input "/user/abc/input" \
-output "/user/abc/output" \
-mapper cat \
-reducer cat
wait
/home/abc/hadoop-2.6.0/bin/hadoop fs -mv output/part-00000 input/large_file.txt
wait
/home/abc/hadoop-2.6.0/bin/hadoop fs -rm -R output/
wait
/home/abc/hadoop-2.6.0/bin/hadoop fs -rm tmp/*.txt
step 2: schedule the script using cron to run every minute using cron expression
a) edit crontab by choosing an editor
>crontab -e
b) add the following line at the end and exit from the editor
* * * * * /bin/bash /home/abc/mergejob.sh > /dev/null 2>&1
The merge job will be scheduled to run for every minute.
Hope this was helpful.