Skip to main content

Social and Economic Conditions and Firm Growth

  • Chapter
  • First Online:
The Growth of Firms in Less-Developed Countries
  • 226 Accesses

Abstract

Firms operate in particular social contexts, characterized by the national, social and economic institutions, which influence the social conditions of innovative activity. Governance institutions have an effect on strategic control, employment institutions influence organizational integration and investment institutions shape financial commitment. This chapter examines whether these social and economic factors matter for the emergence of innovative firms in a less-developed economy context. This is an important aspect since the social conditions are variables that can be influenced by government policies and managers.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    More information on this dataset is provided in Chapter 6 which analyses organizational capabilities and managerial practices.

References

  • Almor, T. (2006). Conceptualizing path of growth for the born global firms. Paper presented at the ACCS Annual Conference, Berlin.

    Google Scholar 

  • Almor, T., & Hashai, N. (2004). Competitive advantage and strategic configuration of knowledge-intensive small and medium sized multinationals: A modified resource based view. Journal of International Management, 10(4), 479–500.

    Article  Google Scholar 

  • Amason, A. C., & Sapienza, H. J. (1997). The effects of top management team size and interaction norms on cognitive and affective conflict. Journal of Management, 23, 495–516.

    Article  Google Scholar 

  • Anderton, B. (1999). UK trade performance and the role of product quality, innovation and hysteresis: Some preliminary results. Scottish Journal of Political Economy, 46, 570–595.

    Article  Google Scholar 

  • Austin, J. T., Yaffee, R. A., & Hinkle, D. E. (1992). Logistic regression for research in higher education. Handbook of Theory and Research, 8, 379–410.

    Google Scholar 

  • Autio, E., Sapienza, H. J., & Almeida, J. G. (2000). Effects of age at entry, knowledge intensity, and imitability on international growth. Academy of Management Journal, 43, 909–924.

    Google Scholar 

  • Ayyagari, M., Thorsten, B., & Demirgüç-Kunt, A. (2007). Small and medium enterprises across the globe: A new database. Small Business Economics, 29(4), 415–434.

    Article  Google Scholar 

  • Bernard, A. B., & Jensen, J. B. (2001). Why some firms export? (NBER Working Paper No. 8349). Cambridge: National Bureau of Economic Research.

    Google Scholar 

  • Bloom, N., & Van Reenen, J. (2010). Why do management practices differ across firms and countries? Journal of Economic Perspectives, 24(1), 203–224.

    Article  Google Scholar 

  • Bloom, N., Schweiger, H., & Van Reenen, J. (2011). The land that lean manufacturing forgot? Management practices in transition countries (National Bureau of Economic Research Working Paper Series No. 17231). Cambridge: National Bureau of Economic Research.

    Google Scholar 

  • BSCK. (2012). Entrepreneurship and small business development in Kosovo: Research report. http://www.bsckosovo.org/publikimet/20121108044632244.pdf.

  • Cabrera, A. F. (1994). Logistic regression analysis in higher education: An applied perspective. Higher Education: Handbook of Theory and Research, 10, 225–256.

    Google Scholar 

  • Carlino, G., & Hunt, R. (2009). What explains the quantity and quality of local inventive activity? In G. Burtless & J. R. Pack (Eds.), Brookings-Wharton papers on urban affairs. Washington, DC: Brookings Institution Press.

    Google Scholar 

  • Central Bank of Kosovo. (2017). Annual report 2017. Retrieved from https://bqk-kos.org/repository/docs/2018/CBK_AR_2017.pdf.

  • Coase, R. H. (1937). The nature of the firm. Economica, 4, 386–405.

    Article  Google Scholar 

  • EBRD. (2013). Commercial Laws of Kosovo, an assessment by EBRD. http://www.ebrd.com/downloads/sector/legal/kosovo.pdf. Accessed 22 March 2014.

  • European Commission. (2018). Kosovo 2018 report. Commission staff working document. Strasburg. https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/20180417-kosovo-report.pdf.

  • Gruber, M. (2007). Uncovering the value of planning in new venture creation: A process and contingency perspective. Journal of Business Venturing, 22(6), 782–807.

    Google Scholar 

  • Hosmer, D. W., Jr., & Lemeshow, S. (2000). Applied logistic regression (2nd ed.). New York: Wiley.

    Google Scholar 

  • Janz, B. D., Colquitt, J. A., & Noe, R. A. (1997). Knowledge worker team effectiveness: The role of autonomy, interdependence, team development, and contextual support variables. Personnel Psychology, 50, 877–904.

    Article  Google Scholar 

  • Jones, M. V. (2001). First steps in internationalisation: Concepts and evidence from a sample of small high-technology firms. Journal of International Management, 7(3), 191–210.

    Google Scholar 

  • Koch, M. J., & McGrath, R. G. (1996). Improving labour productivity: Human resource management policies do matter. Strategic Management Journal, 17, 335–354.

    Article  Google Scholar 

  • Lawton Smith, H., & Dickson, K. (2003). Critical factors in inter-firm collaboration. International Journal of Technology Management, 25(1/2), 34–50.

    Google Scholar 

  • Lazonick, W. (2012). The innovative enterprise and the developmental state: Toward an economics of organizational success. Paper prepared for the annual conference of the Institute for New Economic Thinking, Breton Woods, NH, 8–11 April 2011, and revised for the conference on Finance, Business Models, and Sustainable Prosperity, Ford Foundation, New York.

    Google Scholar 

  • Lazonick, W. (2013). The theory of innovative enterprise: Methodology, ideology, and institutions. In J. K. Moudud, C. Bina, & P. L. Mason (Eds.), Alternative theories of competition: Challenges to the orthodoxy (pp. 127–159). London: Routledge.

    Google Scholar 

  • Lazonick, W. H., Mazzucato, M., & Tulum, ÃŒ. (2013). Apple’s changing business model: What should the world’s richest company do with all those profits? Accounting Forum, 37, 249–267.

    Article  Google Scholar 

  • Mosakowski, E. (1998). Entrepreneurial resources, organizational choices, and competitive outcomes. Organization Science, 9(6), 625–643.

    Article  Google Scholar 

  • OECD. (2011). Skills for innovation and research (p. 96). Paris: OECD.

    Book  Google Scholar 

  • OECD. (2013a, March). Assessment of the Kosovo innovation system (RCI Project Paper). OECD Development.

    Google Scholar 

  • OECD. (2013b). Skills development and training in SMEs. Paris: OECD Publishing.

    Book  Google Scholar 

  • OECD/Eurostat. (2005). Oslo manual, guidelines for collecting and interpreting innovation data. Paris: OECD.

    Google Scholar 

  • Scheepers, M. J., Hough, J., & Bloom, J. Z. (2008). Nurturing the corporate entrepreneurship capability. Southern African Business Review, 12(3), 50–75.

    Google Scholar 

  • Shane, S., & Stuart, T. (2002). Organizational endowments and the performance of university start-ups. Management Science, 48, 154–170.

    Article  Google Scholar 

  • World Bank. (2010). BEEPS At-A-Glance 2008 Kosovo, Business Environment and Enterprise Performance Survey (BEEPS IV). Washington, DC: World Bank.

    Google Scholar 

  • World Bank. (2013). BEEPS 2013, Kosovo, Business Environment and Enterprise Performance Survey (BEEPS IV). Washington, DC: World Bank. http://www.enterprisesurveys.org/~/media/GIAWB/EnterpriseSurveys/Documents/Profiles/English/kosovo-2013.pdf.

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

Copyright information

© 2019 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Sahiti, F. (2019). Social and Economic Conditions and Firm Growth. In: The Growth of Firms in Less-Developed Countries. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-14821-8_7

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-14821-8_7

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-14820-1

  • Online ISBN: 978-3-030-14821-8

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics