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Linking Entrepreneurial Strategy and Firm Growth

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  • J. BRUNEEL
  • B. CLARYSSE
  • M. WRIGHT

Abstract

The growth of young, technology-based firms has received considerable attention in the literature given their importance for the generation and creation of economic wealth. Taking a strategic management perspective, we link the entrepreneurial strategy deployed by young, technology-based firms with firm growth. In line with recent research, we consider both revenue and employment growth as they reflect different underlying value creation processes. Using a unique European dataset of research-based spin-offs, we find that firms emphasizing a product and hybrid strategy are positively associated with growth in revenues. The latter strategy also has a positive influence on the creation of additional employment. Contrary to expectation, however, we find that firms pursuing a technology strategy do not grow fast in employment. Our study sheds new light on the relationship between entrepreneurial strategy and firm growth in revenues and employment.

Suggested Citation

  • J. Bruneel & B. Clarysse & M. Wright, 2009. "Linking Entrepreneurial Strategy and Firm Growth," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/571, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:09/571
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    References listed on IDEAS

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