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New Firm Growth: Exploring Processes and Paths

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Author Info
Garnsey, E.
Stam, F.C.
Heffernan, P.
Hugo, O. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)

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Abstract

This paper provides a new methodology for the diachronic study of new firm growth, theoretically grounded in the work of Penrose (1995). We show that a model of firm growth as an unfolding process makes possible draw simple, measurable inferences from firm level to aggregate evidence on growth paths of new firms, expressed as propositions. Metrics on growth paths of new firms in three longitudinal samples of new firms are examined for evidence at the aggregate level consistent with the dynamic model. Dynamic processes in the early development of young firms result in variations in the timing, magnitude, duration and rate of change of growth as between firms and in the same firm over time. The conceptual and methodological framework in this paper provides a basis for future research aimed at explaining the development of new firms.

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File URL: http://hdl.handle.net/1765/1109
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Publisher Info
Paper provided by 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 University Rotterdam. in its series Research Paper with number ERS-2003-096-ORG Revision_Date: 2009-07-29.

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Date of creation: 01 Jan 2003
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Handle: RePEc:dgr:eureri:30001239

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Related research
Keywords: entrepreneurship; new firm growth; Penrose; resource-based perspective; growth paths;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Kirsten Foss & Nicolai Foss, . "The knowledge-Based Approach and Organizational Economics: How Much Do They Really Differ? And How Does It Matter?," IVS/CBS Working Papers 99-1, Department of Industrial Economics and Strategy, Copenhagen Business School. [Downloadable!]
  2. Israel M. Kirzner, 1997. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 60-85, March. [Downloadable!] (restricted)
  3. Garnsey, Elizabeth, 1998. "A Theory of the Early Growth of the Firm," Industrial and Corporate Change, Oxford University Press, vol. 7(3), pages 523-56, September.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Erik Stam, 2005. "Why Butterflies Don’t Leave - Spatial development of new firms," ERSA conference papers ersa05p449, European Regional Science Association. [Downloadable!]
  2. Ferreira, João & Azevedo, Susana, 2007. "Entrepreneurial Orientation as a main Resource and Capability on Small Firm’s Growth," MPRA Paper 5682, University Library of Munich, Germany. [Downloadable!]
  3. E. Stam & E. Garnsey, 2005. "New Firms Evolving in the Knowledge Economy; problems and solutions around turning points," Papers on Economics and Evolution 2005-05, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
  4. A. Arrighetti & S. Curatolo & A. Lasagni, 2008. "Determinanti della domanda di laureati nell'industria manifatturiera italiana," Economics Department Working Papers 2008-EP02, Department of Economics, Parma University (Italy). [Downloadable!]
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