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SME growth in the service sector: A taxonomy combining life-cycle and resource-based theories

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  • João José Matos Ferreira
  • Susana Garrido Azevedo
  • Rosa Pires Cruz

Abstract

The approach to the life-cycle theory has been used as an analytical tool of the firms' growth. Several researchers argue that organisations move across several development stages where different problems are found resulting from different management styles and priorities, and resources. This research aims to develop an empirical taxonomy of small medium enterprise (SME) growth in the service sector based on life-cycle and resource-based theories. The data were submitted to bivariate and multivariate analyses to develop and test an empirical life-cycle model. It was possible to conclude that the firms could be clustered in three life-cycle stages. Some implications and future researches are addressed.

Suggested Citation

  • João José Matos Ferreira & Susana Garrido Azevedo & Rosa Pires Cruz, 2008. "SME growth in the service sector: A taxonomy combining life-cycle and resource-based theories," The Service Industries Journal, Taylor & Francis Journals, vol. 31(2), pages 251-271, December.
    • Handle: RePEc:taf:servic:v:31:y:2008:i:2:p:251-271
    DOI: 10.1080/02642060802712855
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