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dc.contributor.authorWeiss, Martin
dc.contributor.authorKhoury, Theodore Andrew
dc.contributor.authorKreutzer, Markus
dc.date.accessioned2019-09-02T13:02:52Z
dc.date.available2019-09-02T13:02:52Z
dc.date.issued2019en_US
dc.identifier.issn0065-0668
dc.identifier.doi10.5465/AMBPP.2019.17587abstract
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6384
dc.description.abstractGrowth represents an essential element to the entrepreneurial journey as it reflects the recognition and pursuit of opportunities. However, despite prior research, the relationship between growth and profitability still remains illusive. With an attempt to inform a new understanding of this relationship, we examine its non-linear character through decomposing growth into organic and acquisitive modes and theorize the way in which these modes shape profitability. Further, we propose that these modes can affect profitability through their interaction with each other. We study these relationships with a panel of established German companies over 13 years to uncover an inverted U-shaped relation between growth and profitability, mainly driven by acquisitive growth, but organic growth has a declining positive effect. The interaction of both growth modes shows a negative impact of acquisitive growth on the positive performance effect of organic growth. Furthermore, we conduct post-hoc tests that reveal a contrast to how younger and smaller firms realize different trajectories of profitability depending on their mode of growth.en_US
dc.language.isoenen_US
dc.subjectGrowthen_US
dc.subjectGrowth and Profitabilityen_US
dc.titleThe relationship between growth and profitability revisited - Exploring different modes of growthen_US
dc.title.alternativeAcademy of Management Proceedingsen_US
dc.contributor.departmentPortland State Universityen_US
dc.contributor.departmentEBS Business Schoolen_US
dc.identifier.eissn2151-6561
vlerick.conferencedate09/08/2019-13/08/2019en_US
vlerick.conferencelocationBoston, Massachusetts, United Statesen_US
vlerick.conferencename79th Annual Meeting of the Academy of Managementen_US
vlerick.conferenceorganiserAcademy of Managementen_US
vlerick.knowledgedomainEntrepreneurshipen_US
vlerick.typeconfpresConference Proceedingen_US
vlerick.vlerickdepartmentEGSen_US
dc.identifier.vperid163047en_US


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