Firm-Growth and Functional Strategic Domains: Exploratory Evidence for Differences Between Frontier and Catching-Up Economies

18 Pages Posted: 6 Sep 2022

See all articles by Klaus Friesenbichler

Klaus Friesenbichler

Austrian Institute of Economic Research (WIFO); Supply Chain Intelligence Institute Austria

Werner Hölzl

Austrian Institute of Economic Research (WIFO)

Date Written: March 1, 2022

Abstract

This paper explores the relationship between strategic functional domains and firm growth using the European Community Innovation Survey 2012. We provide a mapping of the joint effect of strategies on firm growth in frontier and catching-up economies. Methodologically, we explain employment growth in quantile regressions by estimating conditional coefficients across the distribution of firm-growth intensities. Firm growth in catching-up economies is to a lesser extent innovation-driven and focuses on diversifying geographically and establishing alliances. Firm growth in frontier economies is innovation-driven and tends to occur in existing markets. We thereby map the context-dependent role of strategies for firm growth and introduce yet unexplored topics like cost efficiency and organizational flexibility to the firm growth literature.

Keywords: Firm growth, Dynamic capabilities, Strategy Functions, Community Innovation Survey, Europe

JEL Classification: D22, L21, L25, L26

Suggested Citation

Friesenbichler, Klaus and Hölzl, Werner, Firm-Growth and Functional Strategic Domains: Exploratory Evidence for Differences Between Frontier and Catching-Up Economies (March 1, 2022). Journal of Economics and Business, Vol. 119, No. 106033, 2022, Available at SSRN: https://ssrn.com/abstract=4197863

Klaus Friesenbichler (Contact Author)

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Wien, A-1103
Austria

Supply Chain Intelligence Institute Austria ( email )

Werner Hölzl

Austrian Institute of Economic Research (WIFO)

P.O. Box 91
Wien, A-1103
Austria

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