Entrepreneurial firm growth in creative industries: fitting in … and standing out!

Abstract

Abstract Firm growth in creative industries, which are characterized by craftmanship, imagination, artistic quality and innovativeness, is a conundrum. By means of a matched pair case study design of market leaders and followers in seven creative industries in the Netherlands, the present paper seeks to tackle this conundrum. It suggests that for entrepreneurial firms to develop (instead of stagnating or demising), founders need to fit in, or understand the value creation and conversion processes in vigor within their industry. For firms to grow by means of an expansion of their markets, founders need to stand out, or create resource advantages vis a vis other firms in the industry, which could lie in an internationalization or a digitalization vantage. Not despite of, but because of their quality focus, which accrues to reputation advantages and impact, creative firms succeed in growing. Lessons are drawn from how and why firms in creative industries develop and grow. These may contribute to firm growth assessment practices and process theories.