Authors: Andrea Furlan; Roberto Grandinetti
This paper explores firm growth as a multidimensional phenomenon involving size, relationships and capabilities. Our starting point is the recognition that management literature on firm growth shows two fundamental fallacies. The first fallacy the fallacy of modelling firm growth refers to the tendency of many models to frame growth exclusively in terms of size and as a sequential of predetermined stages. The second fallacy the fallacy of measuring firm growth refers to the manifest inconsistencies of the measures normally adopted to gauge firm growth. We maintain that both fallacies can be overcome by reframing firm growth as a result of the interaction of three dimensions: size growth, relationships growth, and capabilities growth. Based on a qualitative analysis of 14 case studies, we propose a model showing how the three dimensions interact over time thus giving shape to firm growth. The model appears to be more realistic than previous theoretical efforts and provides fruitful insights for managers.
Journal: n.a. (n.a. – n.a.)
Web Address: n.a.
Publish Year: 2009
Conference: Marseille, France (2009)