The centrality of organisational factors in the growth of new technology-based firms

Purpose New technology-based firms (NTBFs) are a great potential source of job creation and economic growth. In France, strong heterogeneity of their growth trajectories is observed yet many of them remain small. A better understanding of these trajectories is thus necessary. The purpose of this paper is to explore the influence of individual and organisational factors on 253 growth trajectories of NTBFs. Design/methodology/approach The authors use a Heckman ordered probit model to study explanatory factors of growth trajectories in NTBFs created between 1999 and 2012. This method allows them to study the determinants of the presence of a growth dynamics at the same time as the determinants of growth intensity. Findings The model shows that entrepreneurs play a weak role in understanding the growth trajectories of their company. Rather, it is organisational factors - such as the level of innovation and the governance structure - that explain initiation of a growth trajectory and the intensity of the growth. Originality/value By using an original methodology, the authors highlight the importance of organisational factors and encourage entrepreneurs to develop a governance structure focused on internal stakeholders to support growth.