Making Do With Less: Firm Growth And Financial Performance Under Resource Constraints

Fitzsimmons, Jason R. (2007) Making Do With Less: Firm Growth And Financial Performance Under Resource Constraints. In Babson College Entrepreneurship Research Conference (BCERC), June 2007, Madrid, Spain.


This paper examines the financial resourcing behaviour of a sample of high growth firms. Firms growing faster than generated internally funds must finance this growth through external means or alternatively adopt bootstrapping measures aimed at increasing efficiency in working capital management. For a sample of manufacturing firms, we find that consistent with the pecking order theory; high growth firms have a preference for internal rather than external finance. More specifically, we find that the short term growth in sales to be largely financed through increased inventory turnover along with a reduction in gross margins. This raises questions about the longer term sustainability of this growth.

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ID Code: 13085
Item Type: Conference Paper
Refereed: No
Additional URLs:
Keywords: Firm Growth, Performance, Financial, Resources
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Organisational Planning and Management (150312)
Divisions: Current > Research Centres > Australian Centre for Business Research
Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2007 (please consult author)
Deposited On: 19 Mar 2008 00:00
Last Modified: 05 Jan 2011 13:36

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