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Factors Influencing Firm Sales Growth: An Instrumental Variable Analysis

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  • Abdisalan Salad Warsame

Abstract

Although several studies have been done on sales growth, the mistake was that firm growth and sales growth were understood as the same thing, using the same perspective and variables for both growth studies. This study takes different perspectives focusing merely on factors influencing sales growth using micro-level data from the World Bank Enterprises Survey (WBES) datasets to examine whether sales growth in sub-Sahara Africa has different stories to tell employing the OLS and 2SLS analyses. Unlike other studies, the results indicated that top management gender diversity has no correlation to sales growth, but temporary employees do. The results also reveal that the key drivers of a firm’s sales growth are skilled labour, labour productivity, and fixed assets, which are statistically significant and have a positive relationship with annual sales growth.

Suggested Citation

  • Abdisalan Salad Warsame, 2023. "Factors Influencing Firm Sales Growth: An Instrumental Variable Analysis," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 15(2), pages 1-51, December.
    • Handle: RePEc:ibn:ijmsjn:v:15:y:2023:i:2:p:51
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    References listed on IDEAS

    as
    1. Kumar, M S, 1985. "Growth, Acquisition Activity and Firm Size: Evidence from the United Kingdom," Journal of Industrial Economics, Wiley Blackwell, vol. 33(3), pages 327-338, March.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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