Frontiers of Entrepreneurship
EXPECTED CONSEQUENCES OF GROWTH AND THEIR EFFECT ON GROWTH WILLINGNESS IN DIFFERENT SAMPLES OF SMALL FIRMS
Johan Wiklund, Jönköping International Business School
Per Davidsson, Jönköping International Business School
Frédéric Delmar, Entrepreneurship and Small Business Research Institute
Magnus Aronsson, Entrepreneurship and Small Business Research Institute
The Need to Repeat Studies in Different Samples
Variables and Measures
TABLE 1: Independent Variables, How A Doubling Of The Number Of Employees Is Likely To Affect Each Area.
TABLE 2 : Comparison Of Means For Growth Willingness And Expected Consequences Of Growth For Firms Of Different Sized Brackets.
TABLE 3 : Comparison Of Means For Growth Willingness And Expected Consequences Of Growth For Old And Young Firms.
TABLE 4: Comparison Of Means For Growth Willingness And Expected Consequences Of Growth For Firms Of Different Industries.
TABLE 5: Linear Regression Results For The Effect Of Expected Consequences Of Growth On Growth Willingness When The Sample Is Divided Based On The Three Contingencies Industry, Size And Age.
TABLE 6: Linear Regression Results For The Effect Of Expected Consequences Of Growth On Growth
TABLE 7: Linear regression results for the effect of expected consequences of growth on growth willingness for the three different samples
This study focuses on small business managers
willingness to expand their firms. More specifically, we examine
the relationships between expected consequences of growth on the
one hand, and over-all growth willingness on the other. The data
were collected in three separate telephone interview surveys of
small business managers over a ten year period. Three broad
industry groups (manufacturing, services, and retailing) and
three size classes of firm (5-9, 10-19, and 20-49 employees) are
covered. The same measuring instrument was used in all three
studies. Central variables in the analyses are two indicators of
over-all growth willingness, and eight expected consequences of
growth, viz. its effect on the managers workload and work tasks,
employee well-being, private finances, control, independence,
quality, and crisis survival ability. In addition, we use firm
size, firm age and industry as control variables. The results
suggest that non-economic concerns may be relatively more
important than the expected financial outcome in determining
over-all growth willingness. In particular, the concern for
employee well-being comes out strongly across samples, size
classes, and industries. We conclude that this issue is worthy of
further study, that it is likely to represent a broader concern
for the soft qualities of small scale, and that it
may be a cause for recurrent conflict for small business
owner-managers when deciding about the future route for their
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Last Updated 06/01/98