SpringerBriefs in Business

Understanding the Myth of High Growth Firms

The Theory of the Greater Fool

Authors: Brännback, Malin, Carsrud, Alan L., Kiviluoto, Niklas

  • Challenges conventional biases in research, practice, and policymaking concerning the correlations among business growth, innovation, and profitability
  • Considers the strategic, financial, and organizational issues associated with generating and sustaining business growth
  • Includes case examples from such industries as airlines, accounting, biotechnology, IT, and wineries
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eBook $39.99
price for USA (gross)
  • ISBN 978-1-4614-9457-7
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover $54.99
price for USA
  • ISBN 978-1-4614-9456-0
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
About this book

In this volume, the authors challenge some long held assumptions about entrepreneurial firms held by academics, public policy makers, investors and even entrepreneurs themselves. The first is assumption is that growth is what really differentiates an entrepreneurial firm from a small business. The second is that growth is always good. Third, if growth is rapid, and/or high growth, it is even better.

Drawing from a fresh review of the literature, their own primary research and experience in entrepreneurial ventures, the authors argue that the relationship between growth and firm performance is, in fact, inconclusive. Despite the strength of contemporary bias, there is strong evidence that the growth-profitability relationship is problematic. For example, rapid growth may lead to considerable organizational challenges that can seriously constrain a firm’s ability to generate sustainable profits. Also, it is not uncommon that a growth firm becomes a victim of its own success.

Using examples from industries as diverse as airlines, accounting, biotechnology, information technology, personal products, wineries, and food establishments, the authors highlight limitations to research due to variations in the choice of growth indicators, the calculation of growth measures, the measurement periods, and whether objective or subjective measures have been used. Moreover, researchers have equated growth with high growth and almost automatically assumed that this also means high technology, while policy makers appear to have interpreted this as high employment.

Armed with more precise definitions and understandings of key concepts and the nature of their causality, the authors consider the implications of restoring profitability to the core of entrepreneurship for future research, firm strategy, financing, organizational structure, resource allocation, and public policy.

Table of contents (8 chapters)

  • Introduction

    Brännback, Malin (et al.)

    Pages 1-3

  • How Did Growth Become So Interesting?

    Brännback, Malin (et al.)

    Pages 5-19

  • Entrepreneurship, Growth, and High-Growth in Research and Policy

    Brännback, Malin (et al.)

    Pages 21-41

  • Measuring Growth

    Brännback, Malin (et al.)

    Pages 43-54

  • Growth and Profit

    Brännback, Malin (et al.)

    Pages 55-74

Buy this book

eBook $39.99
price for USA (gross)
  • ISBN 978-1-4614-9457-7
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover $54.99
price for USA
  • ISBN 978-1-4614-9456-0
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
Understanding the Myth of High Growth Firms
Book Subtitle
The Theory of the Greater Fool
Authors
Series Title
SpringerBriefs in Business
Copyright
2014
Publisher
Springer-Verlag New York
Copyright Holder
The Author(s)
eBook ISBN
978-1-4614-9457-7
DOI
10.1007/978-1-4614-9457-7
Softcover ISBN
978-1-4614-9456-0
Series ISSN
2191-5482
Edition Number
1
Number of Pages
V, 116
Topics