How do Firms Grow? Modes, Paths, and Strategies. A Review of the Literature

Abstract

How do firms grow? The objective of this research is to review and unify the literature that identifies Modes, Paths and Strategies available for firms to promote growth. The sample, selected from the Scopus, ScienceDirect and Google Scholar databases, comprises 115 works published between 1957 and 2021. This research offers three contributions to the firms' growth literature. Firstly, it unifies the literature on different modes of growth, into three main categories: organic, inorganic and hybrid. Secondly, it links these modes of growth with different strategic paths. Thirdly, it reviews the determinant strategies for firms’ growth and relates them to different modes of growth. We conclude that the literature on Modes, Paths and Strategies, both at the theoretical and empirical level, is far from being conclusive. Based on these insights, a new research agenda is proposed.