The results of our main analyses above indicate that, on the one hand, the high internal social capital of the board had a consistently negative influence on
firm growth. This supports our suggestion that internal bonding may hinder the active functioning of the board that leads to successful exploration for
firm growth.
Studies like those of Coad and Tamvada (2012) confirm these ideas, as they find that the export activity has a positive effect on different measures of
firm growth. In a similar vein, other research proves that growth-oriented entrepreneurs are more likely to pursue a higher presence of their firms in international markets (De Clercq, 2005; Heinonen, Pukkinen, & Nummela, 2004).
Third, using these data, we can observe the
firm growth derived in the previous subsection.
THE RESEARCH ON THE
FIRM GROWTH PROCESS AND ITS RELATIONSHIPS WITH OTHER PERSPECTIVES ON FIRM EXPANSION
Firm owners need to understand the
firm growth that will finance a succession is largely dependent on the junior advisors: Consequently, they deserve to share in that increased revenue and firm value.
Hypothesis 1: Strategic planning is positively related to family
firm growth.
As competitors begin to catch up, the initial firm develops additional dynamic capabilities which distance a firm from its competitors to provide for additional
firm growth.
Self-Organizing--The self-organizing process is the overall governance process of a firm that would normally start developing after the early
firm growth stage and controls all the other processes.
Another part of the explanation may come from the aforementioned theoretical observations that growth ambition results more often in actual
firm growth and employment.
The authors take the natural logarithm of firm size and expect it to be negatively related to
firm growth. Firm age is another control variable, since it can better reveal the life cycle of the firm (Evans, 1987; Geroski & Gugler, 2004).
The topic of
firm growth has attracted scholarly interest since Gibrat's contribution in the 1930s: the economic importance of rapidly-growing young firms was highlighted in the 1970s by David Birch (Gibrat, 1934; Birch, 1979).
671), for example, finds that
firm growth decreases with firm age when size is held constant.
