Abstract

Paradoxically, firm growth is one of the most researched topics in the entrepreneurship literature, yet also among the least understood (Davidsson et al., 2005). One reason for this paradox is that while many theoretically meaningful phenomena have been associated with growth, investigating such phenomena in isolation yields correspondingly isolated insights. Thus, we adopt a configurational model to better understand growth drawing from a sample of Japanese SMEs. We chose three focal predictors for the study, each of which has been shown to positively covary with organizational performance—opportunity recognition mode, entrepreneurial orientation, and intangible resource advantage (Westhead et al., 2005; Covin et al., 2006; Anderson & Eshima, 2011). These three variables, when considered collectively, provide a theoretically complete perspective of how firms translate entrepreneurial opportunities into growth outcomes—how new opportunities recognized, how the firm organizes to exploit those opportunities, and what resources the firm possesses to facilitate exploitation.

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