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Article
Publication date: 13 September 2022

Meiwu Liu, Lijuan Peng, Rui Huang, Hanxiao Liu, Yunlong Duan and Shanwei Lin

The purpose of this study is to examine whether and how independent director-CEO friendliness has an impact on the enterprise's sustainable growth capability and further explore…

Abstract

Purpose

The purpose of this study is to examine whether and how independent director-CEO friendliness has an impact on the enterprise's sustainable growth capability and further explore how corporate social responsibility (CSR) and executive compensation affect the relationship in the Chinese context.

Design/methodology/approach

Using a sample of Chinese-listed companies from 2010 to 2020, the study adopts fixed effects models to empirically analyze the effect of independent director-CEO friendliness on the enterprise's sustainable growth capability and the roles of CSR and executive compensation.

Findings

This study finds that independent director-CEO friendliness is significantly positively correlated with the sustainable growth capability of an enterprise, and this effect is enhanced with the improvement of the degree of CSR fulfillment. What is more, the positive relationship between independent director-CEO friendliness and the enterprise's sustainable growth capability becomes stronger with higher executive compensation.

Originality/value

Given that the existing research on sustainable growth capability mainly focused on the macroeconomic field, this study is of great theoretical significance in exploring the relationship between independent director-CEO friendliness and the enterprise's sustainable growth capability from the micro-level, contributing to the research on the enterprise's sustainable growth capability. In addition, this study considers the boundary conditions of CSR and executive compensation from internal and external perspectives, respectively, as it is innovative to elucidate organizational development from the perspective of internal and external balance.

Details

Cross Cultural & Strategic Management, vol. 30 no. 1
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 25 January 2021

Michael Omeke, Pascal Ngoboka, Isaac Nabeta Nkote and Isaac Kayongo

Enterprise growth drives competitiveness, innovations, employment creation, income generation and social inclusion in societies. The purpose of this paper is to examine the…

Abstract

Purpose

Enterprise growth drives competitiveness, innovations, employment creation, income generation and social inclusion in societies. The purpose of this paper is to examine the mediating effect of networking on the relationship between dynamic capabilities and enterprise growth of financial cooperatives.

Design/methodology/approach

This is a cross-sectional survey and quantitative study of 269 financial cooperatives based on structural equation modelling and bootstrapping techniques analysis.

Findings

The results reveal that dynamic capabilities are vital in promoting the growth of financial cooperatives. In addition, networking partially enhances the contribution of dynamic capabilities to the growth of financial cooperatives. Therefore, dynamic capabilities and networking play a key role in promoting the growth of financial cooperative enterprises.

Research limitations/implications

This was a cross-sectional survey. It did not trace the changes in behavioural and attitudinal aspects of enterprise growth over time. A longitudinal approach is recommended.

Practical implications

It is imperative that managers of financial cooperatives enhance their coordination, learning and competitive response capabilities through consultation, exchange and sharing of information among staff and other stakeholders, to increase the membership, capital and income volumes, depicting growth of financial cooperatives.

Originality/value

This study provides an insight on the mediating effect of networking on the enterprise growth of financial cooperatives in developing countries founded on networks theoretical framework. Unlike previous studies that modelled direct relationship of enterprise growth.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 17 no. 1
Type: Research Article
ISSN: 2042-5961

Keywords

Open Access
Article
Publication date: 29 June 2023

Shamirah Najjinda, Kasimu Sendawula, Samson Omuudu Otengei, Ahmad Walugembe and Saadat Nakyejwe Lubowa Kimuli

The purpose of this study is to establish whether dynamic capabilities mediates the association between social capital and sustainable growth of full-service restaurants in…

1504

Abstract

Purpose

The purpose of this study is to establish whether dynamic capabilities mediates the association between social capital and sustainable growth of full-service restaurants in Kampala, Uganda.

Design/methodology/approach

This study is cross-sectional and correlational in nature. A self-administered questionnaire was used to gather data from 154 full-service restaurants in Kampala. Statistical Package for the Social Sciences (SPSS.25) and Medgraph – Excel Version were used to conduct correlation, hierarchical regression and mediation analysis on the data in order to establish the mediating role of dynamic capabilities.

Findings

Study findings revealed that first, social capital and dynamic capabilities significantly predict sustainable growth of full-service restaurants, second, social capital is significantly associated with dynamic capabilities and third, dynamic capabilities significantly mediate social capital and sustainable growth of full-service restaurants.

Originality/value

The study confirmed that dynamic capabilities significantly mediate social capital and sustainable growth of full-service restaurants unlike the previous studies that focused on the direct association between the study variables in explicating sustainable growth.

Details

Journal of Work-Applied Management, vol. 15 no. 2
Type: Research Article
ISSN: 2205-2062

Keywords

Open Access
Article
Publication date: 14 September 2022

Sanna Joensuu-Salo, Anmari Viljamaa and Emilia Kangas

This paper aims to examine the growth rates of small- and medium-sized enterprises (SMEs) over a three-year period, the relationship between firm size and firm growth in the…

3483

Abstract

Purpose

This paper aims to examine the growth rates of small- and medium-sized enterprises (SMEs) over a three-year period, the relationship between firm size and firm growth in the context of SMEs, and the effect of marketing capability (MC) on firm growth and how it relates to firm size. The theoretical framework is based on the resource-based view and dynamic capabilities.

Design/methodology/approach

Data were gathered from Finnish SMEs (n = 214) and analyzed with Latent growth curve modeling (structural equation modeling). Respondents were chief executive officers or company owners.

Findings

Results show that firm size is unrelated to the rate of change, and MC has a significant effect on both the intercept and slope parameters. Smaller SMEs have less MC than larger SMEs.

Practical implications

While the overall human resources level of the SME is not linked to the rate of growth, MC is. This is an important point for small business growth studies, for it shows what type of personnel is called for during rapid growth. SMEs could advance significantly and rapidly if they invest in versatile human capital, especially in the marketing area.

Originality/value

Majority of the MC research involves larger corporations. This study brings new insights from SME perspective. In addition, this study suggests that it is imperative to consider different types of growth separately. This study contributes to this need by demonstrating the connection between employee growth rate and MC in SMEs.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 25 no. 2
Type: Research Article
ISSN: 1471-5201

Keywords

Book part
Publication date: 23 September 2005

Stephanie A. Fernhaber and Patricia P. McDougall

International new ventures have been argued to seek foreign markets from inception in response to the external environment and/or motivations internal to the firm. For example, a…

Abstract

International new ventures have been argued to seek foreign markets from inception in response to the external environment and/or motivations internal to the firm. For example, a new venture that exists in an industry that is more globally integrated is more likely to have a need to internationalize in order to remain competitive (Shrader, Oviatt, & McDougall, 2000). Similarly, those new ventures that have limited domestic growth due to the size of their home country may look elsewhere in order to gain a sufficient level of sales to survive (Zahra & George, 2002). Some of the many firm-specific motivations to internationalize might include the desire to fully exploit a unique product (Burgel & Murray, 2000; Oviatt & McDougall, 1994, 1995), capitalize on the learning advantage of newness (Autio, Sapienza, & Almeida, 2000) or take advantage of networking opportunities (Reuber & Fischer, 1997).

Details

International Entrepreneurship
Type: Book
ISBN: 978-0-76231-227-6

Article
Publication date: 17 August 2012

Wangbin Hu and Yulii Zhang

The gap between the high failure rate and the tremendous growth difference of new ventures has attracted scholars' widespread attention and resulted in the rich research outcomes…

Abstract

Purpose

The gap between the high failure rate and the tremendous growth difference of new ventures has attracted scholars' widespread attention and resulted in the rich research outcomes of entrepreneurial orientation (EO). The purpose of this paper is to present a new construct and build up the conception model “entrepreneurial orientation‐new venture capability‐new venture's performance”.

Design/methodology/approach

This paper, on the basis of evolution economics as well as strategic and organizational theory, adopts the layered multi‐regression method and structure equation model to validate the theory hypothesis about the conception model.

Findings

Through 150 valid samples, this paper validates the dimensions of new venture's EO and new venture capability of China's context, moderating effect of environmental hostility and environmental, and mediating effect of new venture capability. The findings indicate that EO does significantly positively affect new venture performance, but the indirect impact of new venture capability is stronger.

Research limitations/implications

This paper has a few limitations which need to be improved in future study, including developing the time sequence study, expanding the research sample from Tianjin to other Chinese regions, and so on.

Originality/value

The paper's theoretical contributions are as follows: first of all, it points out the construct dimension of EO in the Chinese context; second, it introduces environment factor into Chinese new ventures' EO study; and finally, it constructs an integrated analysis concept based on the capability perspective – the new venture capability, abstracting its dimension and testing its mediator between EO and performance.

Details

Nankai Business Review International, vol. 3 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

Open Access
Article
Publication date: 18 March 2021

Emidio Gressler Teixeira, Gilnei Luiz de Moura, Luis Felipe Dias Lopes, Diego Antônio Bittencourt Marconatto and Adalberto Américo Fischmann

The purpose of this study is to analyze the relationship between dynamic service innovation capabilities (DSICs) and startup growth in an emerging country.

3708

Abstract

Purpose

The purpose of this study is to analyze the relationship between dynamic service innovation capabilities (DSICs) and startup growth in an emerging country.

Design/methodology/approach

This paper used a theoretical DSIC model to process data on 137 Brazilian startups, using a stepwise regression.

Findings

Service startup growth is related to the capability of enterprises to understand market signals, learn from customers and design a scalable, repetitive and profitable business model.

Research limitations/implications

Despite the innovative nature of startups, this paper found that technological and networking capacities are not a determinant of growth.

Practical implications

Managers should commit themselves to improve their competence in terms of understanding market signals, even when they already have a consolidated business model, products and service offerings. The findings also function as a warning about the dangers of an excessive focus on technological capabilities.

Social implications

Innovative startups, which achieve high growth create a disproportionate number of new jobs. Hence, by indicating the dynamic capabilities that are more conducive to firm growth, this paper contributes to society and the economy at large.

Originality/value

The findings challenge the myth of technological capacity and networking skills as the main sources of startup growth. This paper shows that founders and managers of service startups who want to achieve rapid growth should concentrate more effort on other skills. Marketing competence and building scalable business models – abilities that are common to successful traditional firms – are more relevant for short-term growth than technological innovation.

Details

RAUSP Management Journal, vol. 56 no. 1
Type: Research Article
ISSN: 2531-0488

Keywords

Article
Publication date: 24 August 2020

Vilani Sachitra and Chandra Padmini

It is imperative to offer a new perspective of Entrepreneurial Growth Intention (EGI) that draws directly upon the capability approach. The aim of this study is to investigate the…

Abstract

Purpose

It is imperative to offer a new perspective of Entrepreneurial Growth Intention (EGI) that draws directly upon the capability approach. The aim of this study is to investigate the role of capabilities in the context of EGI in the floriculture industry in Sri Lanka.

Design/methodology/approach

The study was exploratory and is mainly qualitative in nature. In-depth interviews were carried out with the owners of farms who possess experience in floriculture commercial cultivation in Sri Lanka.

Findings

The results emerged that there are different perspectives among farm owners regarding EGI. Drawing attention on the stories of our participants and making a three-phase analysis, we identified 31 key actions denoted by the farm owners. This work then suggests that the seven capabilities might be fruitfully framed around EGI.

Research limitations/implications

As the results stress the role of capabilities in the formation of an entrepreneur's growth intention is vital. Therefore, more targeted measures should be drawn to build fair and supportive facilities to obtain advanced knowledge, to familiarise with the emergence of technology and to attain professional services specifically in financial literacy.

Originality/value

The question of what factors influence EGI at the farm level is still largely unexplored as less is known about the effect of capabilities on EGI. The study expands the current debates on EGI and institutional environment, which allows the mapping out of capability development.

Details

South Asian Journal of Business Studies, vol. 10 no. 2
Type: Research Article
ISSN: 2398-628X

Keywords

Open Access
Article
Publication date: 30 March 2021

Christina Öberg

This paper describes and discusses company spin-ins and spin-outs as a means to understand company growth in a dynamic context. The following question is asked: How can growth be…

2050

Abstract

Purpose

This paper describes and discusses company spin-ins and spin-outs as a means to understand company growth in a dynamic context. The following question is asked: How can growth be understood in spin-ins and spin-outs of innovative firms? The paper suggests return on capabilities as a measure to understand growth in an open innovation context.

Design/methodology/approach

The empirical part of the paper consists of a single case study. Data was captured through interviews and secondary data sources.

Findings

The paper points to that resources alone do not explain strategic decisions by a company and how spin-ins and spin-outs result from the need for capabilities, changes in business foci and temporary solutions to deal with overcapacities or lack of alternatives.

Originality/value

The paper contributes to research by discussing contemporary issues in strategy and innovation and relating them to the resource-based view and the growth of the firm. Spin-outs, and acquisitions and divestitures as interlinked events have rarely been focused on in the literature, while they remain frequent phenomena in practice.

Details

Journal of Organizational Change Management, vol. 34 no. 3
Type: Research Article
ISSN: 0953-4814

Keywords

Article
Publication date: 1 January 2006

Vivek Kapur, Jeffere Ferris, John Juliano and Saul J. Berman

This study of the growth history and practices of 1,238 companies over a decade by the IBM Institute for Business Value found that top growth companies excel in three vital areas

4344

Abstract

Purpose

This study of the growth history and practices of 1,238 companies over a decade by the IBM Institute for Business Value found that top growth companies excel in three vital areas: course, capability and conviction. IBM calls this the “3Cs model.”

Design/methodology/approach

The IBM research team developed a database of growth and shareholder return performance for companies included in the S&P Global 1200. Starting with the 2003 list, the team added the firms that “fell off” the listing over the preceding decade. The study worked with a final list of 1,238 companies with complete data over the decade. Collectively, this group recorded median annual revenue growth of 8.5 percent and median TSR growth of 8.8 percent.

Findings

The most successful growers: have a clear point of view on their industry, addressing both where it is headed and how they will create value in its new form or environment; are iconoclasts who evolve their product‐market portfolio on an ongoing basis; sustain the growth quest by developing multiple growth initiatives that are backed by ongoing cost and asset management to create funding; foster a culture that responds to the necessity of change, and a cadre of leaders with the passion and follow through to make the change stick

Research limitations/implications

The article provides a sound intellectual background for researchers who want to compile in‐depth case studies.

Practical implications

The article advises corporate leaders to: assess their company's status against your growth ambitions and the 3C model winners follow; develop a point of view on the future and its opportunities; evolve your product market portfolio and initiatives; develop a competitive model; get to know your capabilities and align them with opportunities.

Originality/value

Contrary to conventional wisdom, firms with the will to be successful growers can break free of perceived constraints related to size, industry boundaries and geographic neighborhood.

Details

Strategy & Leadership, vol. 34 no. 1
Type: Research Article
ISSN: 1087-8572

Keywords

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