A Meta-Analysis of the Determinants of Organic Sales Growth
International Journal of Research in Marketing, Forthcoming
45 Pages Posted: 28 Aug 2009
Date Written: August, 26 2009
We present the results of a meta-analysis on drivers of organic sales growth, conducted using a Hierarchical Bayes estimation technique. Based on a comprehensive review of a diverse set of literatures on organic sales growth, we identify eleven drivers of organic sales growth performance of firms: (i) innovation, (ii) marketing orientation, (iii) advertising, (iv) interorganizational networks, (v) entrepreneurial orientation, (vi) management capacity, (vii) firm age, (viii) firm size, (ix) competition, (x) munificence, and (xi) dynamism. Among the variables that are under a manager’s control, innovation, advertising, market orientation, interorganizational networks, entrepreneurial orientation, and managerial capacity serve as positive drivers of organic growth. Older firms and firms operating in dynamic and competitive environments face constraints in terms of organic growth. We find that the omission of marketing variables in empirical models biases the elasticities of eight of the drivers of organic growth. Three characteristics of the study design affect the elasticity of organic growth drivers: using cross-sectional data instead of panel data, using growth rates instead of absolute change as operationalization of growth and using market share instead of sales as a measure of revenues.
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