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 at reconciling the logic behind stochastic models of firm growth with the notion of organizational...

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 of bounded rational firms, two mechanisms drive growth: independent stochastic growth of individual...

Applied research on growth and innovation would seem to suggest that successful innovations do not enhance firm expansion significantly. This article tests the hypothesis that the level of observation typical of applied research hampers the identification of a significant association between...

Empirical literature findings do not provide a clear-cut interpretation of the effects of public aid on performances of firms. We contribute to this literature analysing the effects of public regional financial subsidies on investment using a unique dataset covering all the firms in the Italian...