High-growth Companies Research Articles

Digital Transformation on Corporate Environmental Performance

Digital transformation, as a powerful catalyst for the deep integration of the digital economy and the real economy, has emerged as a crucial driver for enterprise transformation and upgrading, as well as reshaping the competitive landscape. Drawing on data from Chinese A-share listed companies between 2010 and 2019, this study empirically examines the relationship between digital transformation and corporate environmental performance, as well as its underlying impact mechanisms. The findings indicate that digital transformation significantly enhances the level of corporate environmental performance. Moreover, corporate digital transformation facilitates the improvement of environmental performance by enhancing green technology innovation capabilities and optimizing production structures. The positive impact on environmental performance is particularly pronounced in state-owned enterprises, high-growth companies, those with substantial research and development investments, and those garnering high analyst attention.

Pathways to Prosperity: Navigating Post-Stagnation Growth and Revitalizing Business

This study examines the ways in which firms recover from stagnation or sales decline, with a focus on two key aspects: traditional high-growth companies and growth restarts within the framework of organizational life cycle theory. Analyzing a dataset of 1883 Russian firms from 2013 to 2021, this research employs logistic regression to identify factors that promote growth. These factors include the youth of the firm, investment intensity, and significant sales drops during periods of stagnation. The study introduces a new economic category, termed ‘restarting growth’, which signifies a firm’s sustained expansion following an extended period of stagnation. This category is crucial for identifying factors that increase the likelihood of a company transitioning to growth after prolonged stagnation or production downturn. The findings of this study reveal that firms that are younger, invest more intensively in fixed capital, and have experienced a larger sales drop during a period of stagnation are more likely to transition to growth. These results are juxtaposed with the growth factors characteristic of traditional high-growth companies, as well as with the theoretical approaches explaining growth restarts within the framework of organizational life cycle theory. Such distinctions are pivotal both for academic understanding and practical applications in discerning how companies rebound from crises. Moreover, the research identifies several highly significant factors—indicators that can assist investors in selecting promising firms for financing.

A structured review of start-up accelerator performance measurement: an integrated entrepreneurial program evaluation approach

ABSTRACT As a distinct type of early-stage entrepreneurial support organization, start-up accelerators are theoretically well positioned as a new and burgeoning phenomenon for fostering the process of new venture creation. The rapid expansion and notoriety of these intermediaries combined with a growing list of well-known high growth companies emerging from their programs hints at their potential impact. Yet, the question of whether accelerators work (or not) and to what effect is still at a formative stage. The objective of this paper is to conduct a structured review of what accelerators ‘do’ and how scholars have chosen to measure performance across various research designs, change variables and multiple levels of analysis. Drawing from program evaluation theory, an integrated entrepreneurial logic model is used to capture and sort variables associated with measuring start up accelerator performance between 2011 and 2021. We make several contributions through our analysis of research designs, linked change variables and thematic areas to provide insight into the advances, gaps, limitations and tensions arising from extant scholarly attempts at SA performance measurement. The developmental impact of SA programs is discussed with methodological, theoretical, and practical implications for documenting progress and future research pathways charted.

Prospects of investment in shares of high growth companies

Prospects of investment in shares of high growth companies

Региональные особенности российских компаний-«газелей» в пандемию

In the context of global turbulence, the Russian national economy needs positive economic practices of resilience and subsequent development. This need is even greater in regional economies, where a few relatively small growth points, including high-growth firms (HGFs, ‘gazelles’), can become drivers for the entire region. The study analyses the performance of high-growing firms and their impact on regional resilience during the acute phase of the global economic crisis caused by the COVID-19 pandemic (2020–2021). A sample of 11,940 firms (including 403 HGFs) in Sverdlovsk, Vologda, Kurgan, Lipetsk, Orenburg, Chelyabinsk regions, Krasnoyarsk krai and the Republic of Bashkortostan was examined. The research uses such approaches as estimation of the shares of HGFs by number and output and assessment of correlation using the nonparametric method of Spearman’s coefficient. The share of HGFs in the sample as a whole and for each region is consistent with global trends (2-4 %). The industrial structure of high-growth firms differs across regions, meaning that HGFs manifest themselves individually in various regions. ‘Gazelles’ demonstrated a greater ability to preserve jobs during the pandemic in most regions of the sample. For example, while an average employment growth rate was 2 % in 2020, this figure was 25 % for HGFs in Krasnoyarsk krai and Sverdlovsk oblast. During economic recession, ‘gazelles’ positively affect regional resilience in such activities as transport and storage, wholesale and retail trade, and mining. The result is the opposite for manufacturing: a larger share of high-growth companies was characteristic of regions with slower output growth rates for this type of activity in 2020–2121. The findings can be used to substantiate the significance of developing and implementing government support programmes for HGFs at the federal and regional levels.

Employee benefits and company performance: Evidence from a high-dimensional machine learning model

By incorporating novel social media data, we analyze in detail how US companies offer different employee benefits and how they are associated with several company performance measures. Benefits such as 401(k), employee discounts, parking, and vision/dental healthcare are the most commonly provided, while free food -related benefits and family-related benefits are the most scarcely offered. Furthermore, with the aid of efficient machine learning -based models and tools from explainable artificial intelligence, we discover that family-related benefits are often associated with the most satisfied employees and best-performing companies. Our findings indicate that high-growth companies tend to provide a broad array of benefits to their employees. In contrast, highly profitable companies often concentrate on delivering a more limited and specialized set of benefits. We argue that companies offer rare and highly sought benefits to keep and recruit high-performers.

Identifying technology opportunity using dual-attention model and technology-market concordance matrix

To understand the role of new technologies in innovation, it is crucial to develop a methodology that links technology and market information. Conventionally, the relationship between technology and the market has been analyzed using a technology-industry concordance matrix, but the granularity of market information is confined by industrial classification systems. In this study, we propose a new methodology for extracting keyword-level market information related to firms' technology. Specifically, we developed a dual-attention model to identify technical keywords from firms' websites. We then vectorized the market information (extracted keywords) and technology information (patents) using word embedding to construct technology-market concordance matrices. Matrices were generated based on a group of high-growth companies to suggest new technologies and market opportunities in the automotive, electronics, and pharmaceutical industries. Finally, two novel indicators are introduced to demonstrate the model's capability in identifying opportunities at the company level.

Do Share Repurchases Crowd Out Internal Investment in South Africa?

Researchers in developed countries have questioned whether share repurchase activity influences internal investment. The aim of this study was to investigate the relationship between share repurchases and internal investment (defined as capital expenditure, employment expenditure, and research and development) in South Africa, as little was known about this relationship in developing countries. A quantitative research methodology was followed, employing the data of South African listed companies during the 2002–2017 period. A significant negative relationship was noted between share repurchases and employment expenditure when considering all companies, while high-growth companies exhibited a significant negative relationship between share repurchases and capital expenditure. The negative relationships could indicate that companies increase share repurchases to the detriment of internal investment (especially employment). Alternatively, it may imply that share repurchase and internal investment decisions are determined simultaneously, with companies decreasing internal investment and increasing share repurchases in the absence of identifiable profitable projects (or increasing internal investment and decreasing share repurchases when growth opportunities are available). These findings could be useful to shareholders, corporate governance regulators and activists. Given the high unemployment and income inequality in South Africa, the results support a call for the improved regulation of share repurchases to ensure effective monitoring.

High-Growth Benefit Corporations: Leveraging on Intangibles—Insights from Italy

This study investigates the link between high growth, benefit corporations, and intellectual capital. The last is particularly relevant in high-growth companies called “gazelles.” Moreover, it is assumed to play a pivotal role in benefit corporations whose purpose-driven mission is to pursue and integrate economic, social-environmental, and ethical benefits. Drawing from this theoretical background, we identified four benefit corporations among 2183 Italian gazelles founded in 2014 with a minimum employee number equal to 10 in 2015 and 2016 and with a growth of sales and employees of 20% in 2018 and 2019. A qualitative-based methodology, a multiple case study relative to Italian benefit corporations that showed an interesting increasing dynamic in the last two years, 2020–2021, has been carried out to deeply investigate salient traits of the virtuous circle that a benefit corporation triggers. Findings point out that the high-growth benefit corporations balance public purposes and economic goals through a sustainable business model, taking advantage of the intangible resources made available by the group’s companies and sharing them with stakeholders, enriching the context in which they operate through direct actions to support the community and the area.

Yrityshistoria ja kasvuyrittäjyys

In recent years, there has been lively discussion in Finland on why the country does not have more young and fast-growing companies. These debates usually lack historical perspective. Entrepreneurship has always existed in Finland. Yet, the operational environment, values, gender roles and social structures have had an impact throughout history on who is willing and able to establish a company. These factors also influence the ability and willingness of new companies to grow. History can provide us with insights into why the Finnish economy has certain weaknesses, for example a lack of economic and social diversity and a shortage of old and successful middle-sized companies as well as younger high-growth companies. The most successful startup period in Finland was 1850–1914. Many of the companies founded during that time grew quite large. Since then, it has been more difficult for the country to replicate this early success.

Accounting and analytical support for investment attractiveness evaluation of high-growth companies

Subject. The article addresses analytical support for assessing the investment attractiveness of fast-growing companies as a driver of economic growth of the national economy. Objectives. The purpose is to identify optimal investment objects among fast-growing companies through the tools of economic analysis. Methods. The study employs general scientific methods of research, like analysis, comparison, interpretation, and economic and statistical methods. Results. The paper defines the concept of a "fast-growing company", considers the evolution of this economic phenomenon and key works of domestic and foreign scientists that popularized the term, underpins the importance of fast-growing companies for increasing the economic growth rates of an individual State. We reviewed the key challenges faced by fast-growing companies in conditions of global economic uncertainty caused by political instability, described the tools used by advanced companies to mitigate economic risks within their adaptive development strategy. In the context of the analysis of investment attractiveness, we focused on the dynamics of three groups of indicators: profitability, financial stability and efficiency. Conclusions. Based on analyzed coefficients, we conclude that there are certain internal difficulties in some fast-growing companies, which reduce their investment appeal. The assigned rating of a fast-growing company does not always imply the most profitable and efficient business model. To determine the investment attractiveness of companies, additional research would be needed.

Assessing the competitiveness of listed Chinese high-growth companies in the STAR market

This paper aims to assess the competitiveness of 68 high-growth enterprises listed on China's STAR market and explore the combination of antecedent conditions that led to their listing using fuzzy set qualitative comparative analysis. The interpretive structure model was utilized to identify the factors influencing their competitiveness, and the listing index weight for the STAR market was determined using the analytic hierarchy process. The competitiveness of the listed enterprises was found to be promising, with new energy, next-generation IT, and high-end equipment manufacturing being the most prominent fields. However, energy conservation and environmental protection exhibited relatively weak listed competitiveness. The listing of these enterprises was the result of multiple factors rather than a single factor. The listing paths of high-growth enterprises in China were classified into three types: well-operated with high technical competence and innovation-led, high-profit with low growth and innovation, and large-scale, high-profit, and innovation-led.

Gazelle companies in the Russian economy: Innovation, steady rise, and crisis response

Goal: verification of the most popular hypotheses found in the world academic literature on High Growth Companies (HGCs) using Russian empirical data and statistics. Research methodology: desk research of publications; analysis of statistics from Ruslana, the database of Russian and Ukrainian companies (maintained by Bureau van Dijk — a Moody’s Analytics company) which contains financial indicators, tax reporting data, and other information; analysis of information from the Professional Market and Company Analysis System (SPARK) and Federal Institute of Industrial Property (Rospatent) databases on intellectual property ownership; and review of companies through formal questions in survey interviews. Findings: this study demonstrates the key contribution of the HGCs sector to economic growth: HGCs, which represent 15 % of the total number of companies with revenues and more than 10 employees, generate 60 % of the revenue growth of all Russian companies and employment growth from 1.5 million to 2.5 million in 2017–2020. In the past, 77 % of HGCs grew sporadically, which does not support the hypothesis of unsustainable growth for most HGCs and can be the basis for using the rapid growth criterion for selective government support of business entities. There is evidence that innovative companies have more stable rates of rapid growth over the five-year period prior to this research. Based on the company survey, an assumption is formulated about the high resilience of Russian HGCs to external shocks including pandemic, Russia’s military operations, and sanctions against the country, and the HGCs’ willingness to continue growth despite existing difficulties and risks. Originality and contribution of the authors: for the first time in Russia, this study analyzes the full set of Russian HGCs using a comprehensive statistical database. This allows us to compare HGCs from different industries and identify their industry-specific characteristics. In addition, we identify a group of innovative HGCs and show the characteristics of this type of companies. The materials obtained as a result of the review of companies supplement the results of the analysis of statistical data.

The origin of LYONs: A case study in financial innovation

The origin of LYONs: A case study in financial innovation

Investment Attractiveness Evaluation of High Growth Companies in Times of Economic Crisis

Investment Attractiveness Evaluation of High Growth Companies in Times of Economic Crisis

Challenges and Development Prospects for Russian High Growth Companies at the Current Stage of Russia-Western Relationship

Challenges and Development Prospects for Russian High Growth Companies at the Current Stage of Russia-Western Relationship

Investigating the determinants of working capital in the Gulf Cooperation Council

This study aims to identify the determinants affecting the working capital of non-financial companies listed on the Gulf Cooperation Council (GCC). All non-financial companies listed on Qatar, Oman, Saudi Arabia, United Arab Emirates, Bahrain, and Kuwait were collected and resulted in a total of 532 companies during the period of 2008–2021. The final sample included 135 companies (25.38 percent of the total number of non-financial companies in the GCC) that had at least 10 years of data out of the 14 years. This paper applied the panel regression (random and fixed effects techniques); the insignificant result of the Hausman test favored the random effect results. The results argued that there is a negative significant effect of leverage, profitability, and firm size on working capital. This suggests that high-leveraged companies tend to have less working capital and this is due to the commitment to servicing the debts. In addition, large companies tend to have less working capital since they have huge expenses to pay and this affects negatively their working capital level. Also, an interesting result is that highly profitable companies tend to have less working capital since they include themselves in more projects. While, there is a positive significant effect of growth and cash flow on working capital, which confirms that high-growth companies tend to have better working capital.

Building value in high-growth enterprises in an uncertain environment

Purpose: Our attention was directed to high-growth enterprises (HGEs) whose development is associated with an accelerated cycle of growth and value creation that is a result of the scalability of their business models. The primary research objective of the article is to analyze the value components in the business models of high-growth enterprises divided into three size groups (small, medium, large). We pose the research question: which components build value in HGE enterprises' business models under uncertainty? Design/methodology/approach: An empirical study for HGEs was conducted after the third wave of the pandemic in October 2021 using a survey questionnaire on the sample consisted of a total of 125 Polish companies. The relationships between variables were analyzed using structural equation modelling (SEM) based on the maximum likelihood method. Empirical research in relation to theoretical constructs in business models divided into three size groups of businesses allowed us to notice that only in the case of small enterprises, the creation and delivery of value affect the value proposition. Findings: Empirical research in relation to theoretical constructs in business models divided into three size groups of businesses allowed us to notice that only in the case of small enterprises, the creation and delivery of value affect the value proposition. Exploration of business models of high-growth companies allows for a conclusion that building value in conditions of uncertainty should be based on stable foundations, which are regular customers and key customers, as well as well-proven products/services created under license. Originality/value: The novelty of the paper are conducted researches on business models of HGEs during pandemic Covid-19. Keywords: value proposition, value creation and delivery, value capture, business model, high- growth enterprises, uncertainty. Category of the paper: Research paper.

High-growth firms’ behavior in Latam: the case of ICT sector in Ecuador

The work aims to study the High-Growth Companies (HGF) of the ICT sector in Quito-Ecuador and contribute to improve the understanding of the behavior of HGFs in the LATAM region by presenting empirical evidence. A tripod approach is used focusing on the Resource-based view with the test of 7 hypotheses over a case study. In addition, a contextualized survey for the case was carried out to cover both the Institution and the Industrial based view. A multivariate analysis was performed to explore what factors allow us to understand the high-growth behavior. The results show that 4 of the 7 hypotheses were accepted. The correlations between profitability, leverage, liquidity, innovation, and sales growth are relatively "low" but "statistically significant." An explanation is given according to the theoretical framework built. Otherwise, factors such as: solvency, infrastructure (machinery and equipment), exports “did not present statistically significant correlation”.

Multidimensional Model of High-Growth Companies: Do COVID-19 and the Ukraine–Russia Crisis Lead to Differences?

Economies and the companies operating within them are currently facing numerous challenges and threats that are caused by the COVID-19 outbreak and recovery and are prolonged by the Ukraine–Russia crisis. Both have drastically changed the way companies operate. High-growth companies (HGCs) can be an important group because of their characteristics and can provide guidelines for efficiently addressing these challenges and creating new opportunities. Our research contributes to this field, as the objective of the article is to find out whether the global challenges (i.e., the COVID-19 and Ukraine–Russia crisis) lead to a difference in the strength of the influence between the analyzed determinants—the growth factors of HGCs. For this purpose, a structural model equation (SEM) was applied and a multigroup analysis between the two data sets (before and during the global challenges) was performed on the pooled sample of n = 242 HGCs from the Republic of Slovenia. The results showed some statistically significant differences that can be explained by the time perspective and possibly by the influence of global challenges. Thus, this paper makes an important contribution to science, as a reassessment of the theories and implicit assumptions in current research is needed due to global challenges. It is also useful for policy makers who want to consider the impact of recent global challenges in their policy recommendations and for HGCs seeking sustainable high growth.