Differentiating large absolute from relative expansions in De Novo Ventures — Are large capacity expansions sustainable in the long run?

By considering how in many industries an augmentation in production capacity is necessary to bring about significant growth in sales or eventual profit, this study adds an important footnote to prevailing theories of firm survival and competitiveness in strategic management. First, it distinguishes...

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Main Author:	FAN, Terence P. C.
Format:	text
Language:	English
Published:	Institutional Knowledge at Singapore Management University 2017
Subjects:	capacity expansion new ventures start-ups failure fast growth high growth Business Administration, Management, and Operations Sales and Merchandising
Online Access:	https://ink.library.smu.edu.sg/lkcsb_research/5119
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Institution:	Singapore Management University
Language:	English

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spelling	sg-smu-ink.lkcsb_research-61182017-03-20T02:36:06Z Differentiating large absolute from relative expansions in De Novo Ventures — Are large capacity expansions sustainable in the long run? FAN, Terence P. C., By considering how in many industries an augmentation in production capacity is necessary to bring about significant growth in sales or eventual profit, this study adds an important footnote to prevailing theories of firm survival and competitiveness in strategic management. First, it distinguishes between attempts for new ventures to grow their production from the outcome of their expansions. Second, this study delineates the role of large absolute versus relative growths in production and their differential implications on young, de novo ventures: the former being conducive to firm survival while the latter being detrimental to it. This prediction is supported empirically by 10 years of archival data from the intra-European passenger airline industry. In particular, many young firms would survive longer over the medium- to long-term if their relative growth is achieved at a lower but more sustainable rate. 2017-02-01T08:00:00Z text https://ink.library.smu.edu.sg/lkcsb_research/5119 info:doi/10.1142/9789813220614_0015 Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University capacity expansion new ventures start-ups failure fast growth high growth Business Administration, Management, and Operations Sales and Merchandising
institution	Singapore Management University
building	SMU Libraries
continent	Asia
country	Singapore Singapore
content_provider	SMU Libraries
collection	InK@SMU
language	English
topic	capacity expansion new ventures start-ups failure fast growth high growth Business Administration, Management, and Operations Sales and Merchandising
spellingShingle	capacity expansion new ventures start-ups failure fast growth high growth Business Administration, Management, and Operations Sales and Merchandising FAN, Terence P. C., Differentiating large absolute from relative expansions in De Novo Ventures — Are large capacity expansions sustainable in the long run?
description	By considering how in many industries an augmentation in production capacity is necessary to bring about significant growth in sales or eventual profit, this study adds an important footnote to prevailing theories of firm survival and competitiveness in strategic management. First, it distinguishes between attempts for new ventures to grow their production from the outcome of their expansions. Second, this study delineates the role of large absolute versus relative growths in production and their differential implications on young, de novo ventures: the former being conducive to firm survival while the latter being detrimental to it. This prediction is supported empirically by 10 years of archival data from the intra-European passenger airline industry. In particular, many young firms would survive longer over the medium- to long-term if their relative growth is achieved at a lower but more sustainable rate.
format	text
author	FAN, Terence P. C.,
author_facet	FAN, Terence P. C.,
author_sort	FAN, Terence P. C.,
title	Differentiating large absolute from relative expansions in De Novo Ventures — Are large capacity expansions sustainable in the long run?
title_short	Differentiating large absolute from relative expansions in De Novo Ventures — Are large capacity expansions sustainable in the long run?
title_full	Differentiating large absolute from relative expansions in De Novo Ventures — Are large capacity expansions sustainable in the long run?
title_fullStr	Differentiating large absolute from relative expansions in De Novo Ventures — Are large capacity expansions sustainable in the long run?
title_full_unstemmed	Differentiating large absolute from relative expansions in De Novo Ventures — Are large capacity expansions sustainable in the long run?
title_sort	differentiating large absolute from relative expansions in de novo ventures — are large capacity expansions sustainable in the long run?
publisher	Institutional Knowledge at Singapore Management University
publishDate	2017
url	https://ink.library.smu.edu.sg/lkcsb_research/5119
_version_	1770573255825948672

Differentiating large absolute from relative expansions in De Novo Ventures — Are large capacity expansions sustainable in the long run?

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