Managerial capabilities and paths to growth as determinants of high-growth small and medium-sized enterprises

Abstract

This article attempts to examine the role of management capabilities and their relationship with the form of growth chosen by high-growth businesses using a resource based view perspective. The results of the analysis show that when selecting the type of strategy to achieve high growth, not all the capabilities of management are important. In order to grow fast and intensively, small and medium-sized businesses should possess high capabilities in specific functional areas. Businesses’ marketing and financial capabilities are positively associated with market expansion and innovation and as such are two ingredients to achieve high growth.