Testing relationships between firm size and perceptions of growth and profitability: An investigation into the practices of Australian ICT SMEs

Gibrat’s Law mandates the independence of firm size and growth, while the resource-based view of the firm implies a positive relationship between firm size and profits, to be concluded in a profit–growth trade-off. Empirical studies of entrepreneurial success however, have demonstrated firms’ ability to reach a state of high growth and profitability, despite the trade-offs encapsulated within the profit–growth nexus. Upon assessing the relationships between past profitability, current firm growth and size in Australian ICT SMEs, results demonstrate positive relationships between all three indicators. This suggests that profitability can be considered the most important precursor of entrepreneurial success, and also that successful businesses do not suffer from the trade-offs implied by theory

Editorial: An empirical contribution to corporate governance issues

The new issue of Corporate Ownership and Control journal is composed by 15 articles focussing on a variety of topics in the field. Five papers present empirical evidence from banks and financial institutions, three focus on firm finances, four on governance and responsibility and a further three on the role of technology in terms of contextualising various business management activities

Diagnosing Cluster Competitiveness Using Firm-Level Data in the Profit–Growth Nexus Framework

Abstract Competitiveness is defined at the level of firms, clusters, regions, and nations. Although researchers have extensively explored the concept of competitiveness in each of these respective categories, an understanding of the relationship between levels of competitiveness is lacking. The simple aggregation of indicators to approximate broader categories of competitiveness is challenged as a robust solution. This paper proposes an alternative solution to aggregating firm-level competitiveness, based on the profit–growth nexus. Using data collected from SMEs in two ICT clusters, the size–profit–growth relationships were tested. Based on 83 Hungarian and 71 Australian responses, positive relationships were found in both samples, demonstrating high cluster-level competitiveness. It is argued that this outcome better represents cluster-level competitiveness based on firm-level data, than other – linear and additive – aggregation methods. However, a comparative examination of the data across the clusters showed significant differences between the results of the two samples, ascertaining limitations for the generalisability of the results

A Systematic Review of International Entrepreneurship Special Issue Articles

This paper investigates the body of international entrepreneurship knowledge to identify key trends, research directions and emerging research topics. First, 21 systematic and 6 non-systematic review articles published between 1998 and 2018 are reviewed. The analysis of these 27 review articles explores the trends and directions of development in the field, and provides a set of dimensions for evaluating the body of literature. A systematic review of 126 special issue articles using these dimensions proceeds with an assessment of the breadth and depth of international entrepreneurship special issue literature, and provides validation for the key areas and directions of development for international entrepreneurship research. Trends identified include the convergence between international business and entrepreneurship literatures, the focus on SME internationalization and various forms of international new ventures and born globals. Later years show the emergence of comparative international entrepreneurship and comparative entrepreneurial internationalization as research topics, emphasizing the importance of integrating empirical evidence between countries and contexts. There is a gap in the body of knowledge regarding emerging and transitional country contexts. There is also more room for comparative research that could also support the adaptation and development of context specific theories, providing a future direction for international entrepreneurship researchers

The role of social capital within local business networks, in a low-trust transitional environment

This paper examines the value of social capital in low-trust transitional economy environments. Findings from the Belarus and the Ukraine show that entrepreneurs find their local networks useful. Joining the right networks with the right people for the rights reasons is perceived to be a source for venture support