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Growth and job creation at the firm level: Swedish SME data

Darush Yazdanfar and Peter Öhman

Management Research Review, 2018, vol. 41, issue 3, 345-358

Abstract: Purpose - The purpose of this study is to investigate the association between firm sales growth and employment level as a proxy for job creation among small and medium-sized enterprises (SMEs). Design/methodology/approach - The hypotheses were empirically examined by performing several univariate and multivariate regressions to investigate a large panel data set of 13,548 Swedish SMEs in four industry sectors in the four-year period from 2009 to 2012. Findings - The results indicate that growth, in terms of sales, as a competitive advantage is positively related to the number of employees hired by the sampled firms. In addition, the size and age variables are also positively associated with the number of employees hired. The results support the suitability of implementing the resource-based view to explain job creation by SMEs. Originality/value - While previous studies have mostly ignored the impact of these firm-level variables on job creation, the current study highlights the effect of firm-specific characteristics such as sales growth, size, age and industry. The authors use a combination of models to analyse a large cross-sectoral data set regarding the association, in SMEs, between the firms’ sales growth and job creation.

Keywords: Sweden; SMEs; Resource-based view; Job creation; Panel data; Firm growth; Entrepreneurship and small business management (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:eme:mrrpps:mrr-03-2017-0093

DOI: 10.1108/MRR-03-2017-0093

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