Journal of Management & Organization, Vol 18, No 1 (2012)

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Forms of growth: How SMEs use combinations of forms of growth to achieve high growth

JOSE LUIS BARBERO NAVARRO, JOSE CARLOS CASILLAS, BRUCE BARRINGER

Abstract


Most of the literature on high-growth firms focuses mainly on two aspects: growth factors and rates of growth. Nevertheless, little information exists on how SMEs grow. Past research has implicitly considered high-growth firms as a homogeneous category of businesses, however, reality proves they use different forms of growth: domestic and international geographical expansion, launch of new related and unrelated products, product improvement, client retention and the acquisition of new clients. The present work attempts to identify how high-growth SMEs benefit from different combinations of forms of growth to perform successfully. A sample of 89 high-growth SMEs was selected —with an annual growth rate of more than 10% during a five year period— and, by means of a cluster analysis, we found four significantly different combinations of forms of growth. In order to confirm externally the solidity of those combinations, a group of demographic variables was considered (size, age, sector), as well as a set of variables related to the growth strategy (personnel implication, degree of priority of growth, perceived growth with respect to competitors), supporting the existence of significant differences among the groups.






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