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Arriving at the high-growth firm
Institution:1. Stockholm School of Economics, Center for Entrepreneurship and Business Creation, P.O. Box 6501, SE-113 83 Stockholm, Sweden;2. Jönköping International Business School, P.O. Box 1026, SE-551 11 Jönköping, Sweden;3. Lloyd Greif Center for Entrepreneurial Studies, Marshall School of Business, University of Southern California, Bridge Hall One, Los Angeles, CA 90089-0801, USA;1. Department of Innovation, Entrepreneurship, and Service Management, Faculty of Economics and Business Administration, Ghent University, Tweekerkenstraat 2, 9000, Ghent, Belgium;2. Olayan School of Business, American University of Beirut, Riad El Solh, PO BOX 11-0236, Beirut, Lebanon;3. Centre for R&D Monitoring, Faculty of Economics and Business, KU Leuven, Naamsestraat 61 - Bus 3536, 3000, Leuven, Belgium;1. Henley Business School, University of Reading, Whiteknights, Reading, RG6 6UD, UK;2. ICD Business School, IGS-groupe, Paris, France;3. University College London, 16 Taviton Street, Office 418, London, WC1H 0BW, UK;4. Politecnico di Milano, Italy;1. Department of International Business, Marketing, Strategy & Law, School of Business, MacEwan University, 10700-104 Avenue, Edmonton, Alberta T5J 4S2, Canada;2. Montpellier Business School, France
Abstract:This study explores heterogeneity in how firms have achieved high growth. Using the population of all firms in Sweden with more than 20 employees in existence in 1996 (N=11,748), we analyzed their development for each year of the previous 10 years (1987 to 1996). From this population of all firms in Sweden, multiple criteria were used to define a sample of high-growth firms (n=1501). Using 19 different measures of firm growth (such as relative and absolute sales growth, relative and absolute employee growth, organic growth vs. acquisition growth, and the regularity and volatility of growth rates over the 10-year period), we identified seven different types of firm growth patterns. These patterns were related to firm age and size as well as industry affiliation. Implications for research and practice are offered.
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