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What Drives High Growth? Characteristics of Australian Firms

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  • Omer Majeed
  • Antonio Balaguer
  • David Hansell
  • Luke Hendrickson
  • Abasi Latcham
  • Tessa Satherley

Abstract

Using firm‐level data, we analyse the patterns, innovation characteristics and determinants of turnover high‐growth firms (HGFs) in Australia. We find most HGFs do not stay in the high‐growth phase for long, and following the Global Financial Crisis the proportion of HGFs has declined. For HGFs, the results suggest that innovation in goods and services has a much greater impact on turnover growth than for the average firm. For all firms, innovations in goods and services and marketing, and business focus on innovation contribute to turnover growth. Finally, HGFs generate greater returns on investment in research and development than slower growing firms.

Suggested Citation

  • Omer Majeed & Antonio Balaguer & David Hansell & Luke Hendrickson & Abasi Latcham & Tessa Satherley, 2021. "What Drives High Growth? Characteristics of Australian Firms," The Economic Record, The Economic Society of Australia, vol. 97(318), pages 350-364, September.
    • Handle: RePEc:bla:ecorec:v:97:y:2021:i:318:p:350-364
    DOI: 10.1111/1475-4932.12612
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    References listed on IDEAS

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    Cited by:

    1. Siddarth Roche & Sizhong Sun & Riccardo Welters, 2022. "Do Financial Constraints Reduce Process Innovation? Evidence from Australian Firms," The Economic Record, The Economic Society of Australia, vol. 98(323), pages 335-353, December.
    2. André Waal & Enny Kraaijveld, 2022. "Learnings from a successful transformation to a high-performance organization: a longitudinal case study," SN Business & Economics, Springer, vol. 2(11), pages 1-20, November.
    3. Omer Majeed, 2023. "The Role of Innovation and Entrepreneurship in Economic Growth," The Economic Record, The Economic Society of Australia, vol. 99(326), pages 459-461, September.

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