SIZE, AGE AND FIRM GROWTH IN AN INFANT INDUSTRY - THE COMPUTER HARDWARE INDUSTRY IN INDIA

In contrast to the existing studies on the relationship of firm growth with size and age of the firm, which typically focus on relatively mature industries in developed economies, this study analyses firm growth patterns for an infant industry in a developing economy. It is found that (a) age positively impacts growth, which is the opposite of the result in previous studies; (b) as in previous studies, current size negatively impacts growth but the magnitude is much higher; and (c) lagged size negatively impacts growth suggesting that fixed factors become a hindrance to growth in rapidly growing infant industries.