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TO STUDY THE IMPACT OF DETERMINANTS OF GROWTH ON FIRM’S PERFORMANCE WITH RESPECT TO IT INDUSTRY

Journal: INTERNATIONAL JOURNAL OF RESEARCH -GRANTHAALAYAH (Vol.4, No. 1)

Publication Date:

Authors : ; ;

Page : 108-118

Keywords : Entrepreneurship; Individual Determinants; Organizational Determinants; Environmental Determinants; Linear Regression.;

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Abstract

Firm growth is an important indicator of a thriving economy. Although the determinants of firm growth have been studied in various disciplines, an integrated analysis is still lacking. Many determinants of firm growth are summarized and classified into three dimensions: individual, organizational, and environmental determinants. The present paper attempts to provide an integrated analysis on the determinants of firm growth. It gives an opportunity to investigate the determinants of firm growth in a comprehensive way. The close-ended questionnaire was developed from standard questions of relevant literature as a research instrument. The sample size taken for the research is of 110 IT firms entrepreneurs. Among the individual determinants, need for achievement, risk taking propensity and selfefficacy are positively conducive to firm growth. Among the organizational determinants, formulation, preparedness to grow, organizational learning, financial performance have positive impacts on firm growth. Market orientation, Entrepreneurial orientation, competitive intensity shows a negative relationship. Among the Entrepreneurial determinants, munificence, heterogeneity has positive impacts on firm growth. Market dynamism shows a negative relationship. Growth Barriers shows negative relationship. Our study shows that firm growth is a complex phenomenon. It cannot be explained by one particular dimension or one determinant. The most important determinants have been identified from the individual, environmental and organizational dimensions. Organizational determinants have the greatest influence on firm growth.

Last modified: 2017-09-22 19:20:09