Empirical Taxonomy of Start-Up Firms Growth Trajectories
(2006) European Summer University Conference on Entrepreneurship and Entrepreneurship Education Research (ESUCO 2006) — Location: Hämeenlinna (Finland) (25.August.2006)
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- Authors
Biga Diambeidou, Mahamadou 
- Abstract
- This article provides a method that can accommodate, in a systematic way, the analysis of new firm growth trajectories. Exploiting longitudinal data of 741 promising firms, we used a multiple indicator measure of growth, financial and productivity performance as well as firm demographic profile, as a foundation of a multidimensional construct of firm development process. In addition to graphical approach, cluster analysis based on State Sequences Analysis is developed from a combination of Principal Component Analysis and Markov Chain Model to drive taxonomy of new firm growth trajectories. Findings show that new firm growth trajectories are nor linear neither a random phenomenon. While the strategy of growth of promising firm are very heterogeneous, our approach allows us to develop a typology of growth paths based on four states of which three are stable.
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Citations
Biga Diambeidou, M., Wertz, V., Verleysen, M., Gailly, B., & François, D. (2006). Empirical Taxonomy of Start-Up Firms Growth Trajectories. Proceedings of the European Summer University Conference on Entrepreneurship and Entrepreneurship Education Research (ESUCO 2006), 506-530. https://hdl.handle.net/2078.5/139120