The centrality of organisational factors in the growth of new technology-based firms

Abstract

Purpose

New technology-based firms (NTBFs) are a great potential source of job creation and economic growth. In France, strong heterogeneity of their growth trajectories is observed yet many of them remain small. A better understanding of these trajectories is thus necessary. The purpose of this paper is to explore the influence of individual and organisational factors on 253 growth trajectories of NTBFs.

Design/methodology/approach

The authors use a Heckman ordered probit model to study explanatory factors of growth trajectories in NTBFs created between 1999 and 2012. This method allows them to study the determinants of the presence of a growth dynamics at the same time as the determinants of growth intensity.

Findings

The model shows that entrepreneurs play a weak role in understanding the growth trajectories of their company. Rather, it is organisational factors – such as the level of innovation and the governance structure – that explain initiation of a growth trajectory and the intensity of the growth.

Originality/value

By using an original methodology, the authors highlight the importance of organisational factors and encourage entrepreneurs to develop a governance structure focused on internal stakeholders to support growth.

Citation

Tarillon, C. (2022), "The centrality of organisational factors in the growth of new technology-based firms", Journal of Small Business and Enterprise Development, Vol. 29 No. 5, pp. 825-844. https://doi.org/10.1108/JSBED-03-2019-0088