Cross-Industrial Analysis of High-Growth Firm Performance During the Pandemic: Middle-Sized Russian Firms’ Evidence

Dmitri Pletnev () and Kseniia Naumova ()
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Dmitri Pletnev: Chelyabinsk State University
Kseniia Naumova: Chelyabinsk State University

A chapter in Eurasian Business and Economics Perspectives, 2023, pp 101-119 from Springer

Abstract: Abstract. High-growth firms are economic development drivers for any industry. It is an accepted theoretical framework and a typical empirical result of a dozen studies in the 2000. However, the new question is “whether high-growth firms react to the pandemic crisis.” Do they react differently from other firms in the industry? The research hypothesis is based on the assumption that high-growth firms have better ability to grow and have better profitability, efficiency, solvency, and employability during the COVID-19 pandemic. We tested the relevant hypotheses based on the Russian middle-sized firms’ data. The research uses the 2016–2019 data for high-growth firm identification and the 2020 data for hypothesis testing. In total, 7073 firms from 11 industries are evaluated, including 219 high-growth firms. The research includes cluster analysis of industries and testing of cross-industrial differences in the performance of high-growth and normal firms. The research identified the better ability to continuous growth (in four industries of eleven), efficiency (in five industries), solvency (in nine industries), and employability (in seven industries) of high-growth firms in the first year of the COVID-19 pandemic (2020). Wholesale and retail are the industries with the most significant differences in indicator values. No differences in profitability of high-growth and normal firms in 2020 are confirmed. The research also partially confirms the hypothesis of a higher share of high-growth firms in innovative industries. The research results can help improve the state industrial policy and develop the best business practices. Also, the research results can help to develop knowledge about high-growth firms’ sustainability and performance in pandemic challenges or other external shocks.

Keywords: COVID-19; Industry; Gazelles; High-growth firms; Middle-sized firms; Pandemic; Russia (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-031-30061-5_6

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DOI: 10.1007/978-3-031-30061-5_6

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