Tuesday, August 27, 2019

Firm Growth and Competitive Advantage Essay Example | Topics and Well Written Essays - 2500 words

Firm Growth and Competitive Advantage - Essay Example Firm growth may refer to a company’s rate of increase in a broad form of the economy with the ability to increase revenues that are helpful to the industry for a period of time. One time surge in form of revenues cannot be considered as the growth of a firm as this firm growth has to be demonstrated over long periods of time Whenever the discussion about firm growth is started, attention is drawn to major issues such as the theoretical research besides empirical research on the growth of the said firm. The said research further points out that expected rates of growth are quite independent, according to the Gibrat’s Law, from the size of the firm. Different factors have been proved to determine the dynamics of a firm. Firms should, therefore, play a major role in taking a forward step towards growth. More recent studies have pointed out that for the industrial revolution to be facilitated, then learning more about firm growth should be given the center stage for better results. Firms should, therefore, invest more in these learning activities that have a long-lasting effect on the organization’s well being. Ericson and Pakes’s model further states that just staying in the business also proved to provide the firm with relevant information on what exactly they are capable of during their inactive moments. Given the amount is seen from empirical work, the major point of concern should, therefore, be in dealing with some of the problems that arise from the selection of samples and the subsequent processes of censoring these samples after exiting of the firms.

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