02391namaa2200385uu 4500001001000000003000600010005001700016006001900033007001500052008004100067020002700108020001800135024003900153040001700192041000800209042000700217072001500224720003400239245009300273260003500366300002200401336002600423337002600449338003600475506005100511520113700562540006301699546001201762650002201774653002501796653003301821793001801854856011601872999001701988doab72854oapen20260305123947.0m     o  d        cr|mn|---annan211117s2021    xx |||||o     ||| 0|eng d  a/doi.org/10.2867/20387  a97892861505007 ahttps://doi.org/10.2867/203872doi  aoapencoapen0 aeng  adc 7aKC2bicssc1 aEuropean Investment Bank4aut00aEIB Working Paper 2021/08 - Do capacity constraints trigger high growth for enterprises?  bEuropean Investment Bankc2021  a1 online resource  atextbtxt2rdacontent  acomputerbc2rdamedia  aonline resourcebcr2rdacarrier0 aFree-to-readfUnrestricted online access2star  aHigh-Growth Enterprises have a large economic impact, but it is notoriously hard to predict when firms will experience episodes of high growth. This paper proposes that firms reaching critically high capacity utilisation levels reach a 'trigger point' involving either broad-based investment in further growth, or shrinking back to previous levels. It analyses EIBIS survey data (matched to the ORBIS database) which features a question on time-varying capacity utilisation. Overcapacity is a transitory state. Firms enter into overcapacity after a period of rapid growth of sales and profits, and the years surrounding overcapacity have higher employment growth rates. Firms operating at overcapacity make incremental investments (e.g. capacity expansion, process improvements, and modern machinery) rather than investing in R&D and new product development. The analysis finds support for the 'fork in the road' hypothesis: for some firms, overcapacity is associated with launching into massive investments and subsequent sales growth, while for other firms, overcapacity is negatively related to both investments and sales growth.  aAll rights reserveduhttp://oapen.org/content/about-rights  aEnglish 7aEconomics2bicssc  aBusiness & Economics  aFree Enterprise & Capitalism0 aDOAB Library.40uhttps://directory.doabooks.org/handle/20.500.12854/7285470zFree-to-read: DOAB: description of the publication  c92771d92771