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Purpose – This paper aims to study the growth determinants of small-sized agro-based firms in the Indian agro-industry. Design/methodology/approach – The stratified random sampling method was used to collect information from sample agro-firms. A structured pretested questionnaire was designed to collect required data. Descriptive statistics and multivariate technique were used to analyze the data. Findings – The major determinants of firm growth were firm size, managerial networking intensity, skill development of employees, product diversification and market integration. Employee skill development was found to be a significant predictor of firm growth in slow-growing firms, but held as a weak predictor of growth in fast-growing firms; whereas, use of information technology was a significant growth predictor in fast-growing firms and an insignificant growth predictor in slow-growing firms. To attain growth, small-sized agro-based firms should move from a traditional product-focus strategy to a flexible market-focus strategy. Research limitations/implications – This study engaged a small sample size and focused only on the determinants of firm growth in the agro-industry, and mapped number of firm growth predictors. The implication of this study encourages more specific investigations with large samples, i.e. how each determinant influences firm growth in the agro-industry. Practical implications – The study outcome would help agro-enterprises in designing strategies and aligning their current strategy with the desired strategy for firm growth. Social implications – Policy makers especially engaged in self-employment and enterprise development can use the study outcome for policy planning. Originality/value – In recent years, the electronic and computer industry in India has developed and reached to an unexpected height. The agro-industry, in contrast, is still struggling due to its inherent weakness and external threats. The need of the hour is to expedite firm-level competitiveness, managerial excellence and business strategy for growth and survival. Therefore, the present study based on survey data adds value to the firm growth strategies in the agro-industry.
International Journal of Commerce and Management – Emerald Publishing
Published: Mar 2, 2015
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