Scaling behaviour in the growth of companies

@article{Stanley1996ScalingBI,
  title={Scaling behaviour in the growth of companies},
  author={Michael H. R. Stanley and Luis A. Nunes Amaral and Sergey V. Buldyrev and Shlomo Havlin and Heiko Leschhorn and Philipp Maass and Michael Salinger and Harry Eugene Stanley},
  journal={Nature},
  year={1996},
  volume={379},
  pages={804-806}
}
A SUCCESSFUL theory of corporate growth should include both the external and internal factors that affect the growth of a company1–18. Whereas traditional models emphasize production-related influences such as investment in physical capital and in research and development18, recent models10–20 recognize the equal importance of organizational infrastructure. Unfortunately, no exhaustive empirical account of the growth of companies exists by which these models can be tested. Here we present a… Expand
On Size and Growth of Business Firms
We study size and growth distributions of products and business firms in the context of a given industry. Firm size growth is analyzed in terms of two basic mechanisms, i.e., the increase of theExpand
Long-term firm growth: an empirical analysis of US manufacturers 1959–2015
Firm growth is an essential feature of market economies, shaping together macroeconomic performance and the evolution of industry structures. As a potential indicator of organizational 'fitness'Expand
Similarities between the growth dynamics of university research and of competitive economic activities
Quantifying the dynamics of research activities is of considerable current interest, not least because of recent changes in research and development (R&D) funding. Here we quantify and analyseExpand
Evolutionary Model of the Growth and Size of Firms
The key idea of this model is that firms are the result of an evolutionary process. Based on demand and supply considerations the evolutionary model presented here derives explicitly Gibrat’s law ofExpand
On the growth of Iberian firms: An empirical analysis
Abstract The growth dynamics of firms have been object of numerous studies by econophysicists. The vast majority of these studies was done for large developed countries including the United States ofExpand
How Do Organizational Capabilities Shape Industry Dynamics
This paper aims to reconcile the logic behind stochastic models of firm growth and the notion of organizational capabilities as drivers of economic performance. In the proposed behavioral model ofExpand
Firms as Bundles of Discrete Resources – Towards an Explanation of the Exponential Distribution of Firm Growth Rates
A robust feature of the corporate growth process is the Laplace, or symmetric exponential, distribution of firm growth rates. In this paper, we sketch out a class of simple theoretical models capableExpand
Scaling behavior in economics: The problem of quantifying company growth
Inspired by work of both Widom and Mandelbrot, we analyze the Computstat database comprising all publicly traded United States manufacturing companies in the years 1974–1993. We find that theExpand
Organizational Capabilities and Industry Dynamics: A Computational Model
In this paper we propose a model of bounded rational organizations that addresses the role of organizational capabilities in shaping firm size, growth rates and profitability. Our approach aims atExpand
Firms growth dynamics, competition and power-law scaling
We study the growth dynamics of the size of manufacturing firms considering competition and normal distribution of competency. We start with the fact that all components of the system struggle withExpand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 22 REFERENCES
The Size and Growth of Firms
This paper is a sequel to the analysis of the growth process of firms presented in Chapters 4 and 5 of our book Growth, Profitability and Valuation. The relationship between size and growth of firmsExpand
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure
This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept ofExpand
Farm Size and Growth in Canada
In this paper, we empirically examine the relationship between farm size and growth in Canada over the period 1966-81. The analysis is undertaken by testing Gibrat's "Law of Proportionate Effect."Expand
The Relationship between Firm Size and Firm Growth in the U.S. Manufacturing Sector
Using panel data on the publicly traded firms in the U.S. manufacturing sector in the recent past, the author finds that most of the change in employment at the firm level in any given year isExpand
The theory of the firm
Publisher Summary The theory of the firm has long posed a problem for economists. This chapter discusses the analytical models of the firm that go beyond the black-box conception of a productionExpand
The Nature of the Firm
Economic theory has suffered in the past from a failure to state clearly its assumptions. Economists in building up a theory have often omitted to examine the foundations on which it was erected.Expand
Chapter 3 Transaction cost economics
Publisher Summary This chapter discusses the operationalization of transaction cost economics. Vertical integration, an understanding of which serves as a paradigm for helping to unpack the puzzlesExpand
Tests of Alternative Theories of Firm Growth
This study examines the relationships among firm growth, firm size, and firm age for a sample of manufacturing firms between 1976 and 1982. Firm growth is found to decrease with firm age and firmExpand
A Behavioral Theory of the Firm
Provides a theory of decision making within business organizations. Contrary to the economic theory of the firm, which sees firms as profit-maximizing entities, the authors advocate a theory based onExpand
Job Creation and Destruction
Job Creation and Destruction is the culmination of a long, ongoing research program at the Center for Economic Studies. Using the most complete plant- level data source currently available--theExpand
...
1
2
3
...