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New Firm Growth: Exploring Processes and Paths

Author

Listed:
  • Garnsey, E.
  • Stam, F.C.
  • Heffernan, P.
  • Hugo, O.

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.

Suggested Citation

  • Garnsey, E. & Stam, F.C. & Heffernan, P. & Hugo, O., 2003. "New Firm Growth: Exploring Processes and Paths," ERIM Report Series Research in Management 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 University Rotterdam.
    • Handle: RePEc:ems:eureri:1109
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    References listed on IDEAS

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    More about this item

    Keywords

    Penrose; entrepreneurship; growth paths; new firm growth; resource-based perspective;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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