Logic and Dynamics of Firm Growth

Abstract

In this chapter, we shall review the logic of, and the conditions for, the growth of firms in general and the explosive growth of Indian business houses in particular. The key argument of the chapter is that the initial asymmetric resource position and network position give a firm the capacity to exploit ‘creatively’ the conditions of an emerging market economy. The resource position feeds on to network position and vice versa and both grow over time. This process perpetuates asymmetries faster in a rapidly changing large developing country like India, leading to the explosive growth of a few corporations.