Performance Assessment in Entrepreneurship and Management Research: Is There a Pro-Growth Bias?
Posted: 12 Feb 2013
Date Written: 2008
This research assesses the use of growth as performance indicator in entrepreneurship and management research. We show that growth is often used as sole or main indicator of 'success' in entrepreneurship research and there are also other clear signs of a 'pro-growth bias' in that line of research. In mainstream management and strategy research a strong focus on profitability is common. When used, however, growth is uncritically accepted as a positive indicator of performance. The possibility that growth under some circumstances could be negatively related to a more 'final' outcome criterion such as firm value is typically not considered or investigated. Given the low and inconsistent relationship between growth and profitability (see Davidsson, Steffens and Fitzsimmons, 2005) this suggests an overly uncritical view on growth prevails in management research as well, although not to the same extent as in entrepreneurship and SME research.
Keywords: Growth, Profitability, Entrepreneurship, Management, Research
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