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Firm resources, dynamic capabilities, and the early growth of firms

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  • Petra Gibcus
  • F. Stam

Abstract

The early growth of firms is a dynamic process that is difficult to manage and to analyse. Accordingly methodological difficulties have been identified in many studies. This paper uses systematic cohort and longitudinal methodologies to analyse the relationship between dynamic capabilities and new firm growth. Using a panel study of 647 firms, we examine how new firm growth is related to dynamic capabilities. We found no evidence of any effect of dynamic capabilities on the growth of new firms. A longitudinal analysis of the data reveals that especially firm investments over time drive subsequent firm growth, next to growth intentions.

Suggested Citation

  • Petra Gibcus & F. Stam, 2012. "Firm resources, dynamic capabilities, and the early growth of firms," Scales Research Reports H201219, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h201219
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    File URL: http://www.entrepreneurship-sme.eu/pdf-ez/H201219.pdf
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    References listed on IDEAS

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    Cited by:

    1. Nora Hesse, 2013. "Longer is not necessarily better - University Career Level and Job Creation of Academic Entrepreneurs in Germany," ERSA conference papers ersa13p960, European Regional Science Association.
    2. Nora Hesse & Rolf Sternberg, 2017. "Alternative growth patterns of university spin-offs: why so many remain small?," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 953-984, September.

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