Abstract

The purpose of this research was to enhance our understanding of strategies used by rapid growth firms. This study has attempted to answer the following question: "Which new venture strategies are associated with higher growth?" More specifically the purpose of this research was to examine the next two arguments: (1) HGEFs employ multiple strategic emphases; (2) Growth strategy evolves across time. On one hand, results of this study support the argument that HGEFs use multiple strategic emphases as the largest group identified in this study follow a multi-faceted strategy pattern. Firms tend to employ a minimum of three competitive strategic actions at the same time. Fast-growing firms simultaneously control costs, improve product quality and product offerings. These findings support those of other new venture researchers in that no single strategy appears to always work best (McDougall 1987/Ostgaard & Birley 1994). On the other hand, the present study supports the argument that strategy evolves across time. Younger firms tend to be more niche-oriented and innovative. Older and larger firms, on the other hand, tend to have a broad customer and market segmentation basis. In addition, some tendencies seem to characterize all HGEFs. Those strategies emphasize are international focus, innovation, corporate partnerships with large firms, low cost and productivity. As an exploratory step, this study is useful in illustrating the complexity of strategy patterns and providing good insights for venture capitalists and entrepreneurs to understand what are the different high-growth tactics to use across time.