Heroes Today - But What about Tomorrow? Gazelles and Their Long-term Performance

Gjerløv-Juel, Pernille; Guenther, Christina

doi:10.2139/ssrn.2016798

Cited by 6 publications

(8 citation statements)

References 6 publications

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“…There is a large stream of literature focusing on the relationship between firm growth and firm survival (or firm exit). Recent studies have emphasized the persistence of firm growth among HGFs; however, empirical results from these studies are rather mixed (Gjerløv-Juel and Guenther, 2012;Coad et al, 2013;Delmar et al, 2013;Ho ¨lzl, 2014). While reviewing these studies, we found that most of the theoretical rationales on firm growth and survival are either using an industrial organization lens or taking the perspective of organization theory.…”

Section: Theory and Hypothesismentioning

confidence: 85%

“…The view on "growth setback" or "growth interruption" has been supported by empirical studies on the growth persistence of HGFs. Although these studies produce mixed results (Gjerløv-Juel and Guenther, 2012;Coad et al, 2013;Delmar et al, 2013;Ho ¨lzl, 2014), a general tendency is in favor of a negative autocorrelation in annual growth, particularly within the group of small HGFs (Coad, 2007;Coad and Ho ¨lzl, 2009;Capasso et al, 2009). HGFs are essentially "one hit wonders" Ho ¨lzl, 2014) and are more likely to suffer from the "curse of fast growth" (Ho ¨lzl, 2014).…”

Section: Firm Growth and Survival: The Perspective Of Organization Studiesmentioning

confidence: 99%

“…Hence, a U-shaped relationship is expected between firm growth and firm exit. The second part of the U-shape is related to the so-called "curse of fast growth" or "growth setback" due to the deficiency of the "right" resources, capabilities, and organizational structure (Hambrick and Crozier, 1985;Penrose, 1995;Garnsey et al, 2006;Gjerløv-Juel and Guenther, 2012;Ho ¨lzl, 2014). This deficiency may occur once a firm's growth rate reaches an inflection point after which growth leads to an undesired outcome (Pierce and Aguinis, 2013), that is, exit due to firm death in the present case.…”

Section: Introductionmentioning

confidence: 97%

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Is there a risk of growing fast? The relationship between organic employment growth and firm exit

Zhou

Zwan

2019

Industrial and Corporate Change

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Growing firms are the drivers of economic dynamics. While the existing literature often focuses on the average effect of growth on firm survival, we investigate how survival rates vary across the growth distribution using Dutch longitudinal firm-level data (1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012). We theorize and find a Ushaped relationship between organic employment growth and subsequent exit due to firm death in various model specifications. Low positive growth increases survival, too much growth could be harmful for some subgroups of firms, and the steepness of the U-shape depends on firm age, size, and industry.

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Section: Theory and Hypothesismentioning

confidence: 85%

Section: Firm Growth and Survival: The Perspective Of Organization Studiesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 97%

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Is there a risk of growing fast? The relationship between organic employment growth and firm exit

Zhou

Zwan

2019

Industrial and Corporate Change

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“…The abovementioned increasing complexity as the firm grows is at the heart of the conclusion made in a study that focused on the long-term success of gazelles (Gjerløv-Juel & Guenther, 2012). The study focused on the approximately 15,000 small businesses that started in Denmark between 1995 and 2001.…”

Section: Growth Antecedents Determinants and Firm Characteristicsmentioning

confidence: 99%

“…In another recent study based on gazelles in Denmark, results pointed to the fact that gazelles are not able to sustain their rapid growth, and in fact are later outperformed by the more slow-growing firms (Gjerløv-Juel & Guenther, 2012).…”

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confidence: 99%

Growth in established SMEs : Exploring the innovative and ambitious firm

Uddenberg¹

2015

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The growth of firms is a complex but relevant subject for different stakeholders, such as owners, who want returns on their investment, and society, where firms are vessels for jobs and job creation. Despite the vast amount of research conducted on firm growth and factors associated with firm growth, there is no coherent body of knowledge, and the average firm is not growing.This research focuses on growth in established small and medium-sized enterprises (SMEs), i.e. firms that have passed the startup phase and have established themselves on the market. The purpose is to investigate the characteristics of high-growth established SMEs with special focus on the entrepreneur's growth ambitions and the role of innovation activities for firm growth.The data was collected from 88 established SMEs in which interviews were conducted with CEOs, owners, managers, and employees. A questionnaire was used which included questions regarding factors previously linked to firm growth such as resources, market factors, organizational factors, innovation, and attitude toward firm growth.The results show that growth ambitions have a limited impact on firm growth, and that growth ambitions alone are not a good predictor of firm growth. When high-growth firms were compared to the average established SME, there was no difference in the level the managers of the firms were seeking growth. Neither lack of growth, nor high growth, can be explained by the managers' perception of the firm's possibility to grow. Furthermore, there is no evidence that the difference in growth rates is attributed to different levels of growth opportunities.Instead, this research shows that what distinguishes high-growth firms from the average, nongrowing firms are factors associated with innovation, the market, and customer knowledge. The high-growth firms were found to be significantly better at identifying and delivering on unfilled demands. However, no evidence suggests that the high-growth firms had exclusive access to new technology they could leverage as a means to grow faster, and both groups believed there to be plenty of market opportunities and possibilities to create growing niches.If the difference between high growth and no growth in established SMEs is associated with external factors related to innovation, market and customers, it is interesting that when growth ambitions increase, so does the internal focus on organizational structures and systems.Ambitious entrepreneurs who seek firm growth should therefore not lose sight of external factors, and strive to quickly deal with increased internal complexity that accompanies firm growth.iii Istället visar denna studie att det som särskiljer snabbväxande etablerade SMF från genomsnittliga, icke växande, företag är faktorer knutna till innovation, marknad, och företagens kunskap om sina kunder. De snabbast växande företagen var betydligt bättre på att identifiera nya krav och utnyttja den efterfråga som fanns. Noterbart är att de snabbväxande företagen inte hade exklusiv tillgång till ny te...

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Global Market and SMEs

Bijaoui

2016

SMEs in an Era of Globalization

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Heroes Today - But What about Tomorrow? Gazelles and Their Long-term Performance

Cited by 6 publications

References 6 publications

Is there a risk of growing fast? The relationship between organic employment growth and firm exit

Is there a risk of growing fast? The relationship between organic employment growth and firm exit

Growth in established SMEs : Exploring the innovative and ambitious firm

Global Market and SMEs

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