A Meta-Analysis of the Determinants of Organic Sales Growth

International Journal of Research in Marketing, Forthcoming

45 Pages Posted: 28 Aug 2009

See all articles by S. Cem Bahadir

S. Cem Bahadir

University of North Carolina at Greensboro

Sundar G. Bharadwaj

University of Georgia--Terry School of Business; University of Georgia - C. Herman and Mary Virginia Terry College of Business

Michael I. Parzen

Emory University - Goizueta Business School

Date Written: August, 26 2009

Abstract

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.

Suggested Citation

Bahadir, S. Cem and Bharadwaj, Sundar G. and Parzen, Michael I., A Meta-Analysis of the Determinants of Organic Sales Growth (August, 26 2009). International Journal of Research in Marketing, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1462506

S. Cem Bahadir (Contact Author)

University of North Carolina at Greensboro ( email )

347 Bryan Building
516 Stirling Street
Greensboro, NC 27402
27402 (Fax)

Sundar G. Bharadwaj

University of Georgia--Terry School of Business ( email )

105 Brooks Hall
Athens, GA 30602
United States

University of Georgia - C. Herman and Mary Virginia Terry College of Business ( email )

Brooks Hall
Athens, GA 30602-6254
United States

Michael I. Parzen

Emory University - Goizueta Business School ( email )

1300 Clifton Road
Atlanta, GA 30322-2722
United States
404-727-6110 (Phone)
404-727-2053 (Fax)

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