Dr. Karl Wennberg
Karl Wennberg, researcher at the Stockholm School of Economic, will visit CIRCLE and give a seminar on “Performance Feedback and New Firm Growth”.
Discussant: Jonas Gabrielsson (CIRCLE)
Date: Tue, 17 January 2012, 14:15-15:15
Place: CIRCLE seminar room
Abstract: Evolutionary influenced theories of organizational learning suggest that firms grow in order to overcome threats to survival and to establish a competitive position. We outline and test a framework defining the boundary conditions of alternative learning models of firm growth by examining the effects on growth of performance relative to firm-specific and industry-average performance aspirations. Investigating a population of 14,765 new firms in the business services industry sector, we find that the relationship between performance and growth is moderated by firm’s age and size. This lends support to behavioral learning theory in older and larger firms and to economic learning theory in young and small firms. The observed changes in learning behavior tends take place in firms between five and six years of age, and with six to twelve employees, consistent with the research on self-organizing groups. Implications for future research are discussed.
