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Alternative Theories of Small-Firm Growth: A Critical Review

Author

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  • P N O'Farrell

    (Department of Town and Country Planning, Heriot-Watt University, Lauriston Place, Edinburgh EH3 9DF, Scotland)

  • D M W N Hitchens

    (Department of Economics, Queen's University of Belfast, Belfast BT7 1NN, Northern Ireland)

Abstract

This paper contains a review of alternative theories which have been developed in order to explain growth and change in the small manufacturing firm. Models of small-firm growth derived within the industrial economics literature are evaluated together with stage models of growth and stochastic models. Social and psychological perspectives on growth are reviewed and the spatial dimension is also considered. We argue that most previous theories of small-firm growth place too little emphasis upon the difficulties which small owner-managed firms have in meeting the competitive requirements of the marketplace.

Suggested Citation

  • P N O'Farrell & D M W N Hitchens, 1988. "Alternative Theories of Small-Firm Growth: A Critical Review," Environment and Planning A, , vol. 20(10), pages 1365-1383, October.
    • Handle: RePEc:sae:envira:v:20:y:1988:i:10:p:1365-1383
    DOI: 10.1068/a201365
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    References listed on IDEAS

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    1. Allan Gibb & Mike Scott, 1985. "Strategic Awareness, Personal Commitment And The Process Of Planning In The Small Business," Journal of Management Studies, Wiley Blackwell, vol. 22(6), pages 597-631, November.
    2. Shen, T Y, 1970. "Economies of Scale, Penrose Effect, Growth of Plants and Their Size Distribution," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 702-716, Part I Ju.
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    Cited by:

    1. Westhead, Paul & Wright, Mike & Ucbasaran, Deniz, 2002. "International market selection strategies selected by 'micro' and 'small' firms," Omega, Elsevier, vol. 30(1), pages 51-68, February.
    2. Ostgaard, Tone A. & Birley, Sue, 1996. "New venture growth and personal networks," Journal of Business Research, Elsevier, vol. 36(1), pages 37-50, May.
    3. Jack, Sarah L. & Anderson, Alistair R., 2002. "The effects of embeddedness on the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 17(5), pages 467-487, September.
    4. Ferreira, João & Leitão, João & Garrido Azevedo, Susana, 2007. "Configuration of Logistics Activities across Life-Cycle of the Firms and Performance: Proposal of a Conceptual Model," MPRA Paper 1362, University Library of Munich, Germany.
    5. Kollmer, Holger & Dowling, Michael, 2004. "Licensing as a commercialisation strategy for new technology-based firms," Research Policy, Elsevier, vol. 33(8), pages 1141-1151, October.

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