New Firm Growth: Exploring Processes and Paths
AbstractThis paper provides an approach to new firm growth that views this as an unfolding developmental process. This approach is based on a Penrosean (1995) model of the firm. We find that new firm growth is non-linear and prone to interruptions and setbacks to an extent overlooked in the literature. From the model of development used, five propositions are drawn concerning measurable features of new firms' growth paths; these relate to patterns of survival, continuousness of growth, turning points, reversals and cumulative growth. These propositions are examined in the light of data on the growth paths of new firms in three countries, with aggregate comparisons of firms' growth paths effected by graphical representations and sequence analysis.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Industry and Innovation.
Volume (Year): 13 (2006)
Issue (Month): 1 ()
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Web page: http://www.tandfonline.com/CIAI20
Other versions of this item:
- Garnsey, E. & Stam, F.C. & Heffernan, P. & Hugo, O., 2003. "New Firm Growth: Exploring Processes and Paths," Research Paper ERS-2003-096-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
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