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Wennberg keynote i rev Wennberg keynote i rev Presentation Transcript

  • Managing High-Growth Firms – literature review and exploratory evidence Karl Wennberg Stockholm School of Economics Ratio Institute OECD/Polish Ministry of Economy Workshop on “Management and Leadership Skills in High-Growth Firms”
  • Why Managemnt of HGFs? Literature General Characteristics Competencies Market Focus Conclusions Policy Implication Why management of HGFs? HGFs known to generate the majority of new jobs created in OECD economies (Henrekson & Johansson, 2010) HGFs often employe individuals with “right attitude” rather than “specified competencies” (Coad, Daunfeldt, Johansson & Wennberg, 2013)  But who manages HGFs, and how?
  • Procedure • 15 core journals in entrepreneurship, innovation and management considered in previous literature reviews • Complemented with searches in Scopus and Google Scholar • Keywords: high-growth firm, high growth, gazelles, rapid growth (Gilbert et al., 2007; Henrekson & Johansson, 2010; MacPherson & Holt, 2007) • General findings • Only 25 journal articles published to date • Often small-N studies Literature to date Why Managemnt of HGFs? Literature General Characteristics Competencies Market Focus Conclusions Policy Implication
  • Managers / TMTs: • Often higher education (Brüderl & Preisendörfer, 2000) • Often industry experience • Often serial entrepreneurs (Shuman et al., 1985) • Extensive networks / social capital (Florin et al., 2003) • Owner-managers not less apt at running large HGFs (Willard, Krueger, & Feeser, 1992 Managerial characteristics in HGFs Why Managemnt of HGFs? Literature General Characteristics Competencies Market Focus Conclusions Policy Implication
  • Firm background: • Often professional board • Often spin-offs from large corporations (Feeser & Willard, 1989) Strategy / Business evolution: • Often exporting / international orientation (Feeser & Willard, 1990) • Pursue „Innovative strategy‟ (Brüderl & Preisendörfer, 2000) • Primarily internally genererated funds • Often growing profitably, but highly fluctuating (Markman & Gartner, 2002) HGF Firm characteristics Why Managemnt of HGFs? Literature General Characteristics Competencies Market Focus Conclusions Policy Implication
  • Important managerial characteristics quite similar to what matters in literature review of ”general growth”… • Larger team • Manager(s) Education (Gilbert et al., 2007; • Industry and leadership experience MacPherson & Holt, 2007) • HGFs often exhibiting ‟erratic growth‟ (Daunfeldt & Halvarsson, 2011) In what ways are HGFs distinct? Why Managemnt of HGFs? Literature General Characteristics Competencies Market Focus Conclusions Policy Implication
  • Key: Competence Development Recruitment strategic issue Certain internal competence development Strategies centering on employee Bottleneck: “Findings the right people" Data on: • Survey of 127 randomly sampled Swedish HGFs 2012 • Longitudinal case studies on 6 Swedish HGFs 2012 • Longitudinal study of 282 “growth companies” Why Managemnt of HGFs? Literature General Characteristics Competencies Market Focus Conclusions Policy Implication
  • Success factor: Market focus? Market focus provide competitive edge, especially for non- technology firms (McKelvie, Brattström & Wennberg, 2013) Flexibility to take market shares even during economic downturns Flexibility to expand/move focus to new areas Employees moved to growth areas Helping customers meet their own market demand Provide customers what they need – not always what they ask for Why Managemnt of HGFs? Literature General Characteristics Competencies Market Focus Conclusions Policy Implication
  • • Only 25 published studies on management in HGFs • What characterize management of HGFs resembles what characterize management of growth firms in general • Human Resources, Strategy, Organization, Economics, Dynamic Systems, Networks, etc. • Erratic growth patterns, not always profitable growth (Halvarsson & Daunfeldt, 2011; Markman & Gartner, 2002) Knowledge Gap Tentative evidence Interdisciplinarity Stochastic Conclusions Why Managemnt of HGFs? Literature General Characteristics Competencies Market Focus Conclusions Policy Implication
  • • Enhance competencies by policies (i) expanding the TMTs and/or (ii) ease the hiring of experts (Littunen and Tohmo, 2003; Kaulio, 2003) • Taxation of owner-managers,”lock-in” of experts due to labor market regulations, need for internally generated profits to fuel growth (Henrekson & Johansson, 2011; Delmar et al., 2013) • Networking rather than training activities in accelerators, incubators, science parks (Amezcua et al., 2013) The importance of TMT competencies Tentative Policy implications The importance of institutional conditions Business dynamics of HGFs Why Managemnt of HGFs? Literature General Characteristics Competencies Market Focus Conclusions Policy Implication
  • Gratitude to collaborators… …Nils Karlson, Henrik Lindberg, Elina Fergin, Markus Danell & Sebastian Hamilton (Ratio) …Nedim Efendic (SSE) …Sven-Olov Daunfeldt & Dan Johansson (HUI) …Erkko Autio (Imperial College) …Johan Wiklund (Syracuse University) …Frederic Delmar (Lund University) …Alex Coad (University of Sussex) …Anna Öhrwall Rönnbäck (Linköping University) …Erik Stam (Utrecht University) Questions/ comments? And funding bodies… Ragnar Söderbergs Foundations Handelsbankens Foundations FORES VINNOVA