High-growth firms’ behavior in Latam: the case of ICT sector in Ecuador

Abstract

The work aims to study the High-Growth Companies (HGF) of the ICT sector in Quito-Ecuador and contribute to improve the understanding of the behavior of HGFs in the LATAM region by presenting empirical evidence. A tripod approach is used focusing on the Resource-based view with the test of 7 hypotheses over a case study. In addition, a contextualized survey for the case was carried out to cover both the Institution and the Industrial based view. A multivariate analysis was performed to explore what factors allow us to understand the high-growth behavior. The results show that 4 of the 7 hypotheses were accepted. The correlations between profitability, leverage, liquidity, innovation, and sales growth are relatively “low” but “statistically significant.” An explanation is given according to the theoretical framework built. Otherwise, factors such as: solvency, infrastructure (machinery and equipment), exports “did not present statistically significant correlation”.