IDEAS home Printed from https://ideas.repec.org/a/sae/loceco/v37y2022i6p440-461.html

What roles do high-growth small- and medium-sized enterprises play in a slow-growing region? The job diversity and inclusive growth in Incheon, South Korea

Author

Listed:
  • Namji Jung

Abstract

This study examines the labor market outcomes of high-growing incumbent small- and medium-sized enterprises (SMEs) in Incheon during the 2013-2016 economic downturn. By using employee-employer matched panel data, this study found that only a small number of high-growth firms (HGFs) created the majority of new jobs, while other firms reduced their employees in response to the economic challenges. SME HGFs, on the whole, have a tendency to hire people with high human capital. However, a group of HGFs exhibits a different hiring pattern, specifically targeting marginalized individuals in the labor market. Micro-firms that show one time sharp growth are more likely to hire middle-aged unemployed women and provide them with secure and well paying positions. These findings highlight the significant role of incumbent micro-HGFs in job creation and inclusive growth, emphasizing the need for increased attention from policy circles.

Suggested Citation

  • Namji Jung, 2022. "What roles do high-growth small- and medium-sized enterprises play in a slow-growing region? The job diversity and inclusive growth in Incheon, South Korea," Local Economy, London South Bank University, vol. 37(6), pages 440-461, September.
    • Handle: RePEc:sae:loceco:v:37:y:2022:i:6:p:440-461
    DOI: 10.1177/02690942231166350
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/02690942231166350
    Download Restriction: no
    File URL: https://libkey.io/10.1177/02690942231166350?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Frédéric Delmar & Johan Wiklund, 2008. "The Effect of Small Business Managers’ Growth Motivation on Firm Growth: A Longitudinal Study," Entrepreneurship Theory and Practice, , vol. 32(3), pages 437-457, May.
    2. Jun Du & Yama Temouri, 2015. "High-growth firms and productivity: evidence from the United Kingdom," Small Business Economics, Springer, vol. 44(1), pages 123-143, January.
    3. Alexander McKelvie & Johan Wiklund, 2010. "Advancing Firm Growth Research: A Focus on Growth Mode Instead of Growth Rate," Entrepreneurship Theory and Practice, , vol. 34(2), pages 261-288, March.
    4. Reuber, A. Rebecca & Fischer, Eileen, 2011. "International entrepreneurship in internet-enabled markets," Journal of Business Venturing, Elsevier, vol. 26(6), pages 660-679.
    5. Sven-Olov Daunfeldt & Daniel Halvarsson, 2015. "Are high-growth firms one-hit wonders? Evidence from Sweden," Small Business Economics, Springer, vol. 44(2), pages 361-383, February.
    6. Gerard George & Anita M. McGahan & Jaideep Prabhu, 2012. "Innovation for Inclusive Growth: Towards a Theoretical Framework and a Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 49(4), pages 661-683, June.
    7. Muehlemann, Samuel & Wolter, Stefan C., 2011. "Firm-sponsored training and poaching externalities in regional labor markets," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 560-570.
    8. Michael Guth, 2005. "Innovation, social inclusion and coherent regional development: a new diamond for a socially inclusive innovation policy in regions," European Planning Studies, Taylor & Francis Journals, vol. 13(2), pages 333-349, January.
    9. Magnus Henrekson & Dan Johansson, 2010. "Gazelles as job creators: a survey and interpretation of the evidence," Small Business Economics, Springer, vol. 35(2), pages 227-244, September.
    10. Littunen, Hannu & Tohmo, Timo, 2003. "The High Growth in New Metal-Based Manufacturing and Business Service Firms in Finland," Small Business Economics, Springer, vol. 21(2), pages 187-200, September.
    11. Zoltán J. Ács & Pamela Mueller, 2015. "Employment effects of business dynamics: Mice, Gazelles and Elephants," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 16, pages 304-319, Edward Elgar Publishing.
    12. Davidsson, Per & Henrekson, Magnus, 2002. "Determinants of the Prevalence of Start-Ups and High-Growth Firms," Small Business Economics, Springer, vol. 19(2), pages 81-104, September.
    13. Alex Coad & Sven-Olov Daunfeldt & Dan Johansson & Karl Wennberg, 2014. "Whom do high-growth firms hire?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(1), pages 293-327, February.
    14. Nichola J. Lowe & Laura Wolf-Powers, 2018. "Who works in a working region? Inclusive innovation in the new manufacturing economy," Regional Studies, Taylor & Francis Journals, vol. 52(6), pages 828-839, June.
    15. Alex Coad & Jaganaddha Tamvada, 2012. "Firm growth and barriers to growth among small firms in India," Small Business Economics, Springer, vol. 39(2), pages 383-400, September.
    16. Michael S. Dahl & Steven Klepper, 2015. "Whom do new firms hire?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(4), pages 819-836.
    17. Barringer, Bruce R. & Jones, Foard F. & Neubaum, Donald O., 2005. "A quantitative content analysis of the characteristics of rapid-growth firms and their founders," Journal of Business Venturing, Elsevier, vol. 20(5), pages 663-687, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yannis Caloghirou & Ioannis Giotopoulos & Alexandra Kontolaimou & Aggelos Tsakanikas, 2022. "Inside the black box of high-growth firms in a crisis-hit economy: corporate strategy, employee human capital and R&D capabilities," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1319-1345, September.
    2. Alex Coad & Sven-Olov Daunfeldt & Dan Johansson & Karl Wennberg, 2014. "Whom do high-growth firms hire?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(1), pages 293-327, February.
    3. Erhardt, Eva Christine, 2018. "Firm performance after high growth: A comparison of absolute and relative growth measures," MPRA Paper 88077, University Library of Munich, Germany.
    4. Sven-Olov Daunfeldt & Niklas Elert & Dan Johansson, 2014. "The Economic Contribution of High-Growth Firms: Do Policy Implications Depend on the Choice of Growth Indicator?," Journal of Industry, Competition and Trade, Springer, vol. 14(3), pages 337-365, September.
    5. Sven-Olov Daunfeldt & Daniel Halvarsson, 2015. "Are high-growth firms one-hit wonders? Evidence from Sweden," Small Business Economics, Springer, vol. 44(2), pages 361-383, February.
    6. Eva Christine Erhardt, 2021. "Measuring the persistence of high firm growth: choices and consequences," Small Business Economics, Springer, vol. 56(1), pages 451-478, January.
    7. Daniele Moschella & Federico Tamagni & Xiaodan Yu, 2019. "Persistent high-growth firms in China’s manufacturing," Small Business Economics, Springer, vol. 52(3), pages 573-594, March.
    8. Raysa Geaquinto Rocha & João J. Ferreira, 2022. "Gazelles (High-Growth) Companies: a Bibliometric Science Map of the Field," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2911-2934, December.
    9. Demir, Robert & Wennberg, Karl & McKelvie, Alexander, 2016. "The Strategic Management of High-Growth Firms: A Review and Theoretical Conceptualization," Ratio Working Papers 273, The Ratio Institute.
    10. Erhardt, Eva, 2017. "Who persistently creates jobs? Absolute versus relative high-growth firms," MPRA Paper 79307, University Library of Munich, Germany.
    11. Suzanne Mawson, 2018. "Customer perceived value in high growth firms," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(75), pages 755-778.
    12. Vaz, Rolando, 2021. "Firm Growth: A review of the empirical literature," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 30(2), pages 1-20.
    13. Jarle Bastesen & Eirik Vatne, 2014. "Rapid-growth firms: exploring the role and location of entrepreneurial ventures," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Agglomeration, Clusters and Entrepreneurship, chapter 8, pages 159-198, Edward Elgar Publishing.
    14. Gjerløv-Juel, Pernille & Guenther, Christina, 2019. "Early employment expansion and long-run survival," Journal of Business Venturing, Elsevier, vol. 34(1), pages 80-102.
    15. Magnus Henrekson & Dan Johansson, 2010. "Gazelles as job creators: a survey and interpretation of the evidence," Small Business Economics, Springer, vol. 35(2), pages 227-244, September.
    16. Delmar, Frédéric & Wallin, Jonas & Nofal, Ahmed Maged, 2022. "Modeling new-firm growth and survival with panel data using event magnitude regression," Journal of Business Venturing, Elsevier, vol. 37(5).
    17. Besnik A. Krasniqi & Sameeksha Desai, 2016. "Institutional drivers of high-growth firms: country-level evidence from 26 transition economies," Small Business Economics, Springer, vol. 47(4), pages 1075-1094, December.
    18. Jurij Weinblat, 2018. "Forecasting European high-growth Firms - A Random Forest Approach," Journal of Industry, Competition and Trade, Springer, vol. 18(3), pages 253-294, September.
    19. Cyrine Ben-Hafaïedh & Anaïs Hamelin, 2023. "Questioning the Growth Dogma: A Replication Study," Entrepreneurship Theory and Practice, , vol. 47(2), pages 628-647, March.
    20. Daunfeldt, Sven-Olov & McKelvie, Alexander & Seerar Westerberg, Hans, 2023. "Right time or the right person? Investigating the hires of high-growth new ventures," HFI Working Papers 25, Institute of Retail Economics (Handelns Forskningsinstitut).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:loceco:v:37:y:2022:i:6:p:440-461. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.lsbu.ac.uk/index.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.