Firm growth and its determinants
TLDR
In this article, a framework has been designed to study the path followed by small and medium enterprises (SMEs) by considering the influence of internal and external environmental factors on the growth patterns of SMEs.Abstract:
Enterprise growth has been studied by researchers for many years. Different terms have been used by different authors to define the stages of an enterprise growth, but the events through which each enterprise passes remain more or less the same. Most of the researchers suggest that each enterprise has to start, then grow while facing various challenges and crises, and finally mature and decline. There are many factors which will contribute to an enterprise's success. There are many precursors also, which will allow an enterprise to move from one stage to another. There are two sets of thought prevailing among researchers; some suggest that the growth path followed by the enterprise is linear or predictable, and others suggest that the growth is fairly opportunistic or unpredictable. The understanding of the growth of an enterprise depends on the definition of what the firm is, how much has it grown, and what it offers to the market? What assets it controls and what is its legal form. It is critical to study how an enterprise manages its growth transitions and what pattern they follow. In this paper, a framework has been designed to study the path followed by small and medium enterprises (SMEs). This framework considered the influence of internal and external environmental factor on the growth patterns of SMEs. The paper encompasses literature review on various theories of enterprise growth. It highlights that though there are many studies on the stages of enterprise development, there is a dearth of literature on finding patterns of growth followed by the small and medium enterprises. Also, there is lack of literature on the effect of environmental factors in determining growth path. There is a need of a framework which can help the industry to empirically test enterprise growth patterns under different conditions.read more
Citations
More filters
Journal ArticleDOI
Resilience and entrepreneurship: a systematic literature review
Stefan Korber,Rod B. McNaughton +1 more
TL;DR: A systematic multi-disciplinary review of 144 papers that are categorized into six scholarly conversations to build the foundation for a critical discussion of each line of inquiry is presented in this paper, which identifies six conversations or research streams at the intersection of entrepreneurship and resilience: resilience as traits or characteristics of entrepreneurial firms or individuals, resilience as a trigger for entrepreneurial intentions, entrepreneurial behavior as enhancing organizational resilience, entrepreneurial firms fostering macro-level (regions, communities, economies) resilience, resilience in the context of entrepreneurial failure, and resilience as process of recovery and transformation.
Journal ArticleDOI
Impact of information technology innovation on firm performance in Kenya
TL;DR: The findings indicate that technology innovation influences firm performance positively and recommends that entrepreneurs should develop innovative strategies to actualize firm performance.
Establishing the Factors Affecting the Growth of Small and Medium-sized Enterprises in Algeria
TL;DR: In this paper, the authors analyzed the factors influencing the growth rate of small and medium-sized enterprises (SMEs) in Algeria and explored the extent to which their success or failure depends on the wider business climate.
Journal ArticleDOI
Impact of global economic crisis on firm growth
Marko Perić,Vanja Vitezić +1 more
TL;DR: In this article, the authors examined whether growth rates of manufacturing and service industries are independent of firm size during the period of economic crisis and found that turnover growth is positively associated with companies' size.
References
More filters
Book
The theory of economic development
TL;DR: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan EKonomi, kredit, laba wirausaha, bunga atas modal, and siklus bisnis as mentioned in this paper.
Book
The theory of the growth of the firm
TL;DR: In this article, the authors studied the role of large and small firms in a growing economy and found that large firms are more likely to acquire and merge smaller firms in order to increase their size.
Journal ArticleDOI
Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance
G. T. Lumpkin,Gregory G. Dess +1 more
TL;DR: In this article, a contingency framework for investigating the relationship between entrepreneurial orientation and firm performance is proposed. But the authors focus on the business domain and do not consider the economic domain.
Posted Content
The Theory of the Growth of the Firm
TL;DR: The Theory of the Growth of the Firm has illuminated and inspired thinking in strategy, entrepreneurship, knowledge creation, and innovation as discussed by the authors, and only a handful in business and management whose insights and ideas last for 50 years and more.
ReportDOI
Financing Constraints and Corporate Investment
TL;DR: In this paper, the authors examine the importance of a financing hierarchy created by capital-market imperfections and find that investment is more sensitive to cash flow for the group of firms that are most likely to face external finance constraints.