Achieving Rapid Growth Revisiting the Managerial Capacity Problem
Vol. Volume 9, Number 1 April/2004
Bruce R. Barringer and Foard Jones
The managerial capacity problem argues that a firm’s ability to grow is directly related to its ability to add managerial capacity to administer the growth. The extent to which organizational practices and policies can lessen the managerial capacity problem is tested through a qualitative comparison of 50 rapid-growth to 50 normal and slow-growth firms. Results indicate that rapid-growth firms differ from normal and slow-growth firms in a number of key areas in regard to the management techniques that they employ to lessen the impact of the managerial capacity problem and enhance firm growth.