Impact of institutions on emerging European high-growth firms

Purpose Based on the multi-faceted nature of High growth firms (HGFs) and the significant investments by governments to make the business environment more conducive to firm growth, the effects of changing institutions impacting on HGFs has not been explored in any great detail. While we have a very clear understanding of the spatial variations of HGFs and their firm characteristics in various advanced countries, we are lacking such insights for emerging countries. Design/methodology/approach Given the growth prospects and economic reforms, we chose emerging Central and Eastern European (CEE) countries as our research context. Utilising a cross-country panel data set spanning 11 countries, we investigate the share of HGFs across these countries and further examine how changes in institutions impact firms to become HGFs. We frame our arguments around three institutional dimensions, namely corruption, investment climate and bureaucratic quality. Findings Our findings suggest that the rates of HGFs are signif...

[1]  Keith D. Brouthers,et al.  Institutional, cultural and transaction cost influences on entry mode choice and performance , 2002 .

[2]  C. Pattnaik,et al.  Impact of host country institutional context on subsidiary performance , 2015 .

[3]  Magnus Henrekson,et al.  Gazelles as job creators: a survey and interpretation of the evidence , 2010 .

[4]  CEO incentive compensation and earnings management: The implications of institutions and governance systems , 2016 .

[5]  D. Audretsch,et al.  Does Entrepreneurship Capital Matter? , 2004 .

[6]  D. Shepherd,et al.  Building an integrative model of small business growth , 2009 .

[7]  Susan Rose-Ackerman,et al.  Corruption and Government: Causes, Consequences, and Reform , 1999 .

[8]  Yama Temouri,et al.  Institutions and Equity Structure of Foreign Affiliates , 2014 .

[9]  Johan Wiklund,et al.  Conceptual and Empirical Challenges in the Study of Firm Growth , 2006 .

[10]  Eulogio Cordón-Pozo,et al.  Differentiating the effects of the institutional environment on corporate entrepreneurship , 2011 .

[11]  Magnus Henrekson,et al.  Competencies and Institutions Fostering High-Growth Firms , 2008 .

[12]  Luis J. Sanz,et al.  Financial decision-making in a high-growth company: the case of Apple incorporated , 2014 .

[13]  Corruption in international business , 2016 .

[14]  Alvaro Cuervo‐Cazurra,et al.  To formalize or not to formalize: Entrepreneurship and pro-market institutions , 2014 .

[15]  A. McKelvie,et al.  Advancing Firm Growth Research: A Focus on Growth Mode Instead of Growth Rate , 2010 .

[16]  S. Estrin,et al.  The determinants of foreign direct investment into European transition economies , 2004 .

[17]  D. Storey,et al.  What happens to gazelles? The importance of dynamic management strategy , 2010 .

[18]  M. Wright,et al.  Entrepreneurship's Next Act , 2011 .

[19]  K. Schoors,et al.  Privatisation and foreign direct investment in 10 transition countries , 2009 .

[20]  Benyamin Lichtenstein,et al.  A Terminal Assessment of Stages Theory: Introducing a Dynamic States Approach to Entrepreneurship , 2010 .

[21]  Phillip H. Phan,et al.  Entrepreneurship theory: Possibilities and future directions , 2004 .

[22]  M. Shi,et al.  Spillover effects of marketing expertise on market performance of domestic firms and MNEs in emerging markets , 2016 .

[23]  Robin Holt,et al.  Knowledge, learning and small firm growth: A systematic review of the evidence , 2007 .

[24]  N. Jain,et al.  Location determinants for emerging market firms , 2013 .

[25]  Martyn Roberts,et al.  Information systems investment within high‐growth medium‐sized enterprises , 2000 .

[26]  S. Globerman,et al.  Governance infrastructure and US foreign direct investment , 2003 .

[27]  D. Storey.  Understanding the small business sector , 1994 .

[28]  A. Stel,et al.  High Growth Entrepreneurs, Public Policies and Economic Growth , 2007 .

[29]  Chekitan S. Dev,et al.  Choice Between Non-Equity Entry Modes: An Organizational Capability Perspective , 2002 .

[30]  Witold J. Henisz.  The Institutional Environment for Multinational Investment , 2000 .

[31]  Alex Coad,et al.  The Growth of Firms , 2009 .

[32]  Yama Temouri,et al.  Institutional reforms, productivity and profitability:from rents to competition? , 2013 .

[33]  Z. Ács,et al.  Intellectual Property Protection and the Formation of Entrepreneurial Growth Aspirations , 2010 .

[34]  J. Haskel,et al.  Productivity and Growth in UK Industries: An Intangible Investment Approach , 2013 .

[35]  D. North.  Institutions, Institutional Change and Economic Performance: Economic performance , 1990 .

[36]  Paul W. Beamish,et al.  Building Theoretical and Empirical Bridges Across Levels: Multilevel Research in Management , 2007 .

[37]  Michael Anyadike-Danes,et al.  Measuring business growth:high-growth firms and their contribution to employment in the UK , 2009 .

[38]  Yama Temouri,et al.  Ownership Control of Foreign Affiliates: A Property Rights Theory Perspective , 2016 .

[39]  K. Glaister,et al.  A CAUSAL ANALYSIS OF FORMAL STRATEGIC PLANNING AND FIRM PERFORMANCE: EVIDENCE FROM AN EMERGING COUNTRY , 2008 .

[40]  S. Wei,et al.  Corruption and Cross-Border Investment in Emerging Markets: Firm-Level Evidence , 2009 .