Growth Strategies of Indian Mid-Size Entrepreneurial Firms

Abstract

Mid-size firms are transitional firms powered by an entrepreneurial legacy and high growth potential of their operating sector. However, there exists no definition of mid-size firms in India. The only available classification is of small scale industries, based on the investment in plant and machinery of INR 10 million (for some industries INR 50 million). Various countries define small or medium firms based on many criteria making it hard to have a common criteria and values thereof. In this paper we define the medium sized companies in India based on investment, employment and sales turn over. Existing international literature, existing CMIE database, and expert opinion poll are used to estimate the investment and employments limits.. This definition is further compared with a few countries that have attempted to define the mid-size firms in their own settings. The published cases are used to conceptualize growth strategies employed by successful mid-sized firms using content analysis method. The paper also delineates important strategic variables that were found to have a strong relationship with excellent performers. It is concluded that the mid-sized firms have used business model innovations and unique strategic combination of competitive and corporate strategies for creating growth.