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
Date Written: March 26, 2012
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
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