"This study fills a gap in the existing literature"

Dr. Christian Keen, Academic Coordinator of Finance in the School of Management and Social Sciences, discussed his article “Rapid growth and rapid internationalization of smaller enterprises from Canada, ”which was published in the journal Management Decision.

-What is the main point of interest in the article?

-The main objective of this study is to develop a deeper understanding of companies that have a high growth rate (RGEs) in their domestic markets and high-growth companies accompanied by a high degree of internationalization (RIEs). To this end, the study empirically analyzes the profile of these companies, the factors influencing high growth, and those driving rapid internationalization. In addition, the article discusses industrial policies that favor the development of this type of company, as well as the challenges for managers.

-What was the main finding?

-The results of this article point to a rich population of high-growth companies of diverse ages, geographic locations, sizes, and revenues. These firms manage to achieve high growth in both their domestic and international markets over an extended period and in ways not explained by the existing literature. However, it was found that the “environment” (e.g., presence of clusters, industrial policies, educational policies, etc.) is fundamental to the development of this type of firm.

-What can be applied from the research to the Uruguayan economic reality?

-This research indicates that fast-growing firms (RGEs) and those with rapid internationalization (RIEs) are primarily small and medium-sized. Despite their small number relative to the total number of active companies, they are important economic agents for regional and national economies.

These companies deserve the attention of researchers due to the potential they offer for unraveling the growth puzzle, which is a fundamental phenomenon of economic development. Rapidly internationalizing enterprises achieve higher growth in shorter time frames, so the impact on employment is more immediate. The topic also deserves special attention from legislators and regulators since it involves the generation of jobs, income, social benefits, taxes, and wealth at a much faster rate than an average firm.

-What difficulties did you encounter in conducting the research?

-The characteristics of RGEs and RIEs required exploring the topic in greater depth than anticipated, by examining the rapid growth of smaller and younger firms. This study fills a gap in the existing literature on the impact on firm growth when their markets are domestic and when they internationalize.

Interview published in May 2012