TITLE

BORROW FOR FRIENDS: GROWTH STRATEGIES AND SMES' PERFORMANCE

AUTHOR(S)
Capelleras, Joan Lluis; Gutiérrez, Gerardo Velasco
PUB. DATE
October 2014
SOURCE
Allied Academies International Conference: Proceedings of the Ac;Fall2014, Vol. 20 Issue 2, p7
SOURCE TYPE
Conference Proceeding
DOC. TYPE
Abstract
ABSTRACT
While the determinants of venture performance have been the focus of lots of research, there is a lack of studies examining the performance effects of growth strategies. Responding to the call made by some scholars on this matter (Davidsson et al., 2006; McKelvie and Wiklund 2010), we investigate the causal relations among growth strategies and the performances of the Small and Medium Enterprises (SMEs) in the Technological Information and Electronic Sector (TIES) in México. The present research provides empirical evidence about different growth patterns and firms' performance; identifying the existence of three different growth strategies in a sample of selected firms, and afterwards identifying the different results generated by those strategies among the firms. We found that certain firms preferably decide to grow organically, building a firm, step by step, pursuing long-term survival and thus achieve fame; some others firms, decide to grow by buying companies, aiming to increase their fortune by improving profits. Finally, another group choose to grow by borrowing-giving resources and capabilities, in other words, making bussines-friends that allow them to develop competitive advantages. We found that different growth strategies will give rise to different firm performances. Theoretical and managerial implications are also discussed in the paper.
ACCESSION #
112664120

 

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