Chapter 4: Measuring Growth: Methodological Considerations and Empirical Results
4. Measuring growth: methodological considerations and empirical results* Frédéric Delmar INTRODUCTION Regardless of their sizes, expanding and growing firms are indeed the creators of new jobs and of a healthy economy (cf. Storey, 1995). This is also one of the central issues of entrepreneurship research beside innovation and venture creation. Consequently, it is important to examine the determinants of business growth, and the measurement of growth in new ventures and small businesses presents a significant challenge for scholars. Accurate and appropriate measurement of growth is of central importance to entrepreneurship research. In order to accumulate knowledge about the processes and variables that affect business growth, we have to understand how the choice and construct of the dependent variable of growth will affect the resulting model. Without adequate understanding of the importance of the construct of the dependent variable, theory development will be impeded, results will conflict with each other and will have little practical relevance. This is not an unknown problem, and some work has been done to guide academics in their choice of performance measures in the quest to assess and model entrepreneurship (for example Brush and Vanderwerf, 1992; Chandler and Hanks, 1993; Murphy, Trailer and Hill, 1996). However, the literature has mainly concentrated on the reliability and validity of different performance measures which are available in that literature. The purpose of these papers has been to compare different performance measures and data collection methods, because data gathering related to performance has been seen as a problem....
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.