Explaining High-Growth Firms

Research shows that most firms are not growing. However, we still do not know much about which companies these "fast growers" are, and why. To know this is of importance for our understanding of how employment and economic growth are created. This project aims to study the factors that influence the emergence and development of high-growth firms.

Despite strong theoretical arguments that business growth is affected by both internal factors (such as strategy and management skills) and external factors (such as laws and regulations and industry structure), research has tended to focus on one of these explanations at a time. One hypothesis being tested is that it is the interaction of these factors that generate growth.

The project will also investigate potentially high growth firms, firms with high profitability and who has the financial capability to grow, but for some reason refrains. The question is why. Through access to a unique database from Statistics Sweden, we can follow the firms and the individuals who start and run the firms during a 19-year period. 

The project team consists of Associate Professor Dan Johansson, Associate Professor Sven-Olof Daunfeldt and PhD Karl Wennberg. In order to ensure the scientific quality five international scientists are linked to the project as a reference group. The project is expected to last for three years.