Alternative Theories of Small-Firm Growth: A Critical Review

O'Farrell, P. N.; Hitchens, David

doi:10.1068/a201365

Cited by 198 publications

(114 citation statements)

References 25 publications

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“…The life cycle approach to small firm growth has been extensively reviewed and critiqued (Hanks 1990;Hanks and Chandler 1992;Hanks et al 1993;Drazin 1989, 1990;Perry 1982;Quinn and Cameron 1983;Macpherson et al 2004;Phelps et al 2007). Criticisms have typically included: that stage models assume all small firms pass inexorably through each stage; that they fail to capture nascent entrepreneurial activity; and that they pay insufficient attention to the external environment (O'Farrell and Hitchens 1988). For small firms in particular, where growth may occur in reactive, rather than proactive surges (Fombrun and Wally 1989), the orderly sequential view of growth is seen as too deterministic (Miller and Friesen 1984).…”

Section: 'Time Is Important For the Development Of Social Capital Simentioning

confidence: 99%

Conceptualising entrepreneurial capital for a study of performance in small professional service firms

Stringfellow

Shaw

2009

International Journal of Entrepreneurial Behavior &Amp; Research

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Purpose of this paperThe purpose of this paper is to develop a robust theoretical framework for exploring the longitudinal impact of social capital on the performance of small business service firms. Design/methodology/approachThis conceptual paper builds upon theories of capital, particularly entrepreneurial capital, to develop a theoretically robust framework within which to consider the longitudinal impact of social capital on small business service firms. FindingsReviewing the current literature on entrepreneurial capital demonstrates the difficulty in isolating capital in its various forms due to the convertibility and overlapping nature of different types of capital. Also problematic is the issue of the impact of time and the effect which changing amounts and types of capital can have on firm performance. The conceptual model proposed addresses these concerns by exploring social capital in a sector where financial capital presents less of a barrier to entry and where owners' human capital, particularly their educational achievement, is broadly similar. To capture process-based data, three key stages in the entrepreneurship process are explored: nascent, start-up and established. Practical implicationUnderstanding the changing structure and relational aspects of social capital over time and its impact on performance will assist small business owners in utilising their relationships more effectively. Although this study focuses on small professional service firms it may also be applicable to other sectors, or be used in replicated studies with other professions. What is original/value of paperThe conceptual framework proposed recognises the overlapping and convertible nature of different forms of capital. Further it recognises the fluctuating nature of entrepreneurial capital over time and the different outcomes which can emerge from social capital.

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Section: 'Time Is Important For the Development Of Social Capital Simentioning

confidence: 99%

Conceptualising entrepreneurial capital for a study of performance in small professional service firms

Stringfellow

Shaw

2009

International Journal of Entrepreneurial Behavior &Amp; Research

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“…we rely on a conceptual model that allows us to deviate from the strict axioms of mathematic modeling and include the examination of factors outside classical growth models. Moreover, as the examination of small firm related factors is usually excluded from growth models (O'Farrell and Hitchens, 1988), we rely on sociological and psychological approaches to specific individual factors.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Dice Thrown From the Beginning?: An Empirical Investigation of Determinants of Firm Level Growth Expectations

Terjesen

Szerb

2008

Estudios de Economía

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“…Rather than desiring to grow, some entrepreneurs may be just happy to keep their enterprises small (O'Farell 1988;Hitchens, 1988 shocks. There are also learning-by-doing benefits since exporting firms adopt international best practices.…”

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confidence: 99%

Corruption, firm growth and export propensity in Kenya

Kimuyu

2007

International Journal of Social Economics

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Manufacturing firms in Kenya spend an average of 7.5% of their annual sales on bribery, and as much as 14% of the value of government contracts on kick-backs. These averages mask significant sector, location and size differences in the exposure to corruption. Networking with public servants somewhat shields firms against corruption but that with politicians deepens exposure.Corruption does not fast-track access to public services and does not, therefore, play any greasing function. Rather, corruption significantly dampens firm growth and the propensity to export, implicitly reducing returns to investment and employment. It also adds to the cost of doing business, reducing Kenya's competitiveness and critically undermining the country's development prospects. These findings uphold others that have demonstrated the deleterious consequences of corruption, and provide further reason for intensifying the fight against the vice.In the circumstance, there is value in exploring ways of dismantling bureaucratic discretion and control rights on which corruption thrives. Furthermore, sustaining the program of privatisation of state corporations and utility companies would create space for expanding services, ameliorate capacity restrictions, obviate service-stretching, inject competition in the provision of services and reduce rents that are the objects of corruption.

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Alternative Theories of Small-Firm Growth: A Critical Review

Cited by 198 publications

References 25 publications

Conceptualising entrepreneurial capital for a study of performance in small professional service firms

Conceptualising entrepreneurial capital for a study of performance in small professional service firms

Dice Thrown From the Beginning?: An Empirical Investigation of Determinants of Firm Level Growth Expectations

Corruption, firm growth and export propensity in Kenya

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