Petra MezuliΔ Juric
- University of Josip Juraj Strossmayer of Osijek, Faculty of Economics and Business in Osijek, Trg Ljudevita Gaja 7, 31000 Osijek, Croatia
Abstract:
The literature on small business growth has predominantly emphasized organic growth. However, small and medium enterprises (SMEs) can also achieve growth through acquisitions, expanding their capabilities and market presence. This paper reviews the existing literature on SME acquisitive growth, focusing on motives, processes, and outcomes. In contrast to large firms, SMEs often have intertwined ownership and management roles, influencing their acquisition strategies. SME owners pursue acquisitions to create additional value. Entrepreneurs play a critical role in identifying targets, negotiating and integrating acquired companies. The smaller scale of SME acquisitions allows for flexible integration processes tailored to specific needs and cultures. Post-acquisition, SMEs exhibit unique value creation mechanisms, including accelerated organic growth and new organizational knowledge. Overall, this paper highlights the unique characteristics of SME growth through acquisition and contributes to a deeper understanding of how small and medium enterprises can effectively use acquisitions as a growth strategy.
Tenth International Scientific-Business Conference LIMEN Leadership, Innovation, Management and Economics: Integrated Politics of Research - LIMEN 2024 - International Scientific-Business Conference β LIMEN 2024: Vol 10. Conference Proceedings , December 5, 2024
Conference Proceedings published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia
ISBN: 9788680194929 , ISSN: 26836149 , DOI: 10.31410/LIMEN.2024
Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission.
