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Growing Profitable or Growing from Profits : Putting the Horse in Front of the Cart?

Davidsson, Per - 2008

firms which grow without first securing high levels of profitability tend to be less successful in subsequent periods … compared to firms that first secure high profitability at low growth. Empirical tests using two large, longitudinal data sets … profitability. In addition, they have a decreased risk of ending up performing poorly on both performance dimensions compared with …

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