Not all enterprises are oriented towards growth. At the same time, not all cultures of enterprise are equipped to guide both business leaders and their employees towards growth. This is a fact that can be better understood when flipped on its head, i.e. looking to enterprise to see what factors, if present, can trigger growth.
This is what Bruce Dwyer (expert in management, Australia) and Bernice Kotey (UNE Business School, University of New England, Australia) have done in an article published in the December issue of the Journal of Management & Organization (Cambridge University Press), “Identifying high growth firms: Where are we?”. In their article, they review the literature to determine the conditions needed in the culture of enterprise in order for that culture to be a driver of growth in enterprise. Dwyer and Kotey then search for the key markers to be identified within each enterprise.
The model that results is that of an enterprise with a culture that emphasises training and experience in entrepreneurship and management as well as the presence of strategies that focus on innovation, marketing, and employee and organisational learning. By uniting academic analysis with experience in the field, the two authors identify the enterprises that are able to “take steps to access management skills that complement theirs through employment of a management team” in order to promote growth. Also needed, however, are good reward structures, which may include ownership interests. Dwyer and Kotey even look at the financing and human capital needed for growth, but underscore that “abundant resources could compromise efficiency”.
Of course, all of the concepts presented in the article need to be adapted to the actual needs of more practical business analysis. Nonetheless, it does act as a helpful guide towards a growth-oriented culture of enterprise.
Identifying high growth firms: Where are we?
Bruce Dwyer, Bernice Kotey
Journal of Management & Organization, Cambridge University Press and Australian and New Zealand Academy of Management, 9 December 2015