Hyper-Growth of SMEs: Toward a Reconciliation of Entrepreneurial Orientation and Strategic Resources

International Journal of Entrepreneurial Behaviour & Research Vol. 18 No. 2, 2012 pp. 179-197

20 Pages Posted: 7 Feb 2014

See all articles by Lucio Cassia

Lucio Cassia

University of Bergamo - SIGE Sezione di Ingegneria Gestionale

Tommaso Minola

University of Bergamo

Date Written: March 26, 2012

Abstract

Purpose – This study seeks to focus on factors characterizing a pool of hyper-growth firms, trying to gather insights on how the hyper-growth firms achieve hyper-growth.

Design/Methodology/Approach – A theoretical framework is proposed, borrowing well established approaches from strategic management and entrepreneurship. Subsequently, some explorative case studies are described and help in understanding how much of a firm’s hyper-growth can be explained by the resource endowment and entrepreneurial orientation (EO). A revised framework and some propositions are eventually suggested.

Findings – Hyper-growth seems mainly explainable by extraordinary business opportunities and extraordinary access to resources (especially knowledge-based). Entrepreneurship appears much more as a moderating variable, rather than an explanatory variable per se of hyper-growth.

Research Limitations/Implications – Although the case study approach is robustly motivated as a research step that can contribute to the process of theory building, the findings are not statistically generalizable.

Practical Implications – It has long been argued that policy makers and governments, especially in Europe, should concentrate their efforts on those industries and environments where rapid growth firms are likely to be found. The paper offers a practical example on a suitable environment to facilitate such growth, where practices like mergers and acquisitions in foreign countries as well as venture capital and private equity financing play a role.

Originality/Value – No research has been performed so far on the explicit link between resources, EO and hyper-growth. Moreover, the research suggests a possible reconciliation of resource-based view (RBV) and EO frameworks in explaining such a pattern.

Keywords: Entrepreneurial orientation, Firm performance, Growth, Resource based theory, Small to medium-sized enterprises, Hyper-growth, Entrepreneurialism, Company performance

Suggested Citation

Cassia, Lucio and Minola, Tommaso, Hyper-Growth of SMEs: Toward a Reconciliation of Entrepreneurial Orientation and Strategic Resources (March 26, 2012). International Journal of Entrepreneurial Behaviour & Research Vol. 18 No. 2, 2012 pp. 179-197. Available at SSRN: https://ssrn.com/abstract=2391658

Lucio Cassia

University of Bergamo - SIGE Sezione di Ingegneria Gestionale ( email )

Via Pasubio 7b
Dalmine, Bergamo 24044
Italy

Tommaso Minola (Contact Author)

University of Bergamo ( email )

Via Salvecchio, 19
Bergamo, 24129
Italy

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