Firm resources, dynamic capabilities, and the early growth of firms

Petra Gibcus and Erik Stam

No H201219, Scales Research Reports from EIM Business and Policy Research

Abstract: The early growth of firms is a dynamic process that is difficult to manage and to analyse. Accordingly methodological difficulties have been identified in many studies. This paper uses systematic cohort and longitudinal methodologies to analyse the relationship between dynamic capabilities and new firm growth. Using a panel study of 647 firms, we examine how new firm growth is related to dynamic capabilities. We found no evidence of any effect of dynamic capabilities on the growth of new firms. A longitudinal analysis of the data reveals that especially firm investments over time drive subsequent firm growth, next to growth intentions.

Pages: 16 pages
Date: 2012-12-28
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ent and nep-sbm
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Citations: View citations in EconPapers (3)

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