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The Process of SME Growth - Integrating the Resource-Based and Transaction Cost Approaches (Paperback)
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The Process of SME Growth - Integrating the Resource-Based and Transaction Cost Approaches (Paperback)
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This book contributes to the emerging research on the growth
process of firms, with a focus on the expansion of small and
medium-sized enterprises (SMEs). A comprehensive approach to the
issue of small firm growth draws upon empirical findings of the
characteristics and economic importance of high-growth enterprises
and the extant base of theoretical approaches to the growth of
firms, with an emphasis on the literature of firm boundaries (scope
and size). Consequently, this research adopts a deductive approach
to building the conceptual framework of SME growth by integrating
the resource-based view of the firm and transaction cost theory.
This integrative theoretical framework was tested by using the
multi-case study method to conclude with a proposal of the model of
the growth process of SMEs. The model explains the choices of
high-growth entrepreneurs regarding contractual arrangements,
portfolio development, sources of new products, and associated
governance in the expansion process. Consistent with the
heterogeneity of SME expansion, the research reveals three
equifinal patterns of these choices instead of only one path. This
book is valuable for bridging separate and divergent streams of the
literature on firms' growth, namely, entrepreneurship,
microeconomics, and strategic management literature related to firm
boundary decisions.
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