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Firm Growth Factors: A State of the Art Review and Research Issues

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The Growth of Firms in Less-Developed Countries

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Abstract

Factors that enable and constrain firm growth are one of most widely studied topics in the economic literature. The impact of firm growth on economic development, employment and innovation activities is the main reason for this major interest. The literature addressing determinants of the business environment is large and offers numerous important insights into the role of institutions in firm growth. However, despite a large body of work on firm dynamics and their influence on growth for firms in developed economies, the evidence for less-developed economies is scarce. This literature review shows that evidence is particularly scant in relation to explaining the role of firms’ internal capabilities in firm growth, in a less-developed country context. In addition, although the effect of social conditions on the emergence of innovative firms is relatively recent, few academic works explore the social conditions needed to enable the emergence of firms with innovation capabilities.

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Sahiti, F. (2019). Firm Growth Factors: A State of the Art Review and Research Issues. In: The Growth of Firms in Less-Developed Countries. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-14821-8_3

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