Conference article

Driving Profitable Growth

Lars Grønholdt
Department of Marketing, Copenhagen Business School, Denmark

Anne Martensen
Department of Marketing, Copenhagen Business School, Denmark

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Published in: 11th QMOD Conference. Quality Management and Organizational Development Attaining Sustainability From Organizational Excellence to SustainAble Excellence; 20-22 August; 2008 in Helsingborg; Sweden

Linköping Electronic Conference Proceedings 33:45, p. 537-544

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Published: 2008-12-09

ISBN:

ISSN: 1650-3686 (print), 1650-3740 (online)

Abstract

Purpose: The purpose of this paper is to examine how different management practices drive profitable growth and business success in Danish companies.

Methodology/approach: Both qualitative and quantitative research are conducted to study the relationships between eight general mangemement practices and key performance results. A survey among large companies in Denmark and the companies’ key performance results forms the empirical basis for the study. Two central key performance results are ‘increase in turnover’ and ‘return on invested capital’. It can be argued that sustained increase in turnover and high return on invested capital at the same time indicate profitable growth and return to shareholders in the long run.

Findings: The findings provide evidence that the eight management practices are linked to key performance results. The high-performing companies differentiate significantly from the low-performing companies with regard to how well they do the management practices. All eight mangement practices are essential in producing profitable growth.

Research limitations: This study is limited to the eight identified management practices in large Danish companies.

Practical implications: This study has clear implications in terms of identifying and measuring the importance of essential management practices which influence profitable growth and thereby separating the facts from the fads.

Originality/value: The study identifies and measures eight essential management practices and links these to actual key performance results.

Keywords

Profitability; Growth; Key performance results; Management practice; Denmark

References

Grønholdt; L. & Martensen; A. (2005); "Marketing Redefined: Changes and Challenges"; The Marketing Review; Vol. 5; No. 2; pp. 101-109.

Jørgensen; J.K.; Bisgaard; L.; Grønholdt; L. & Martensen; A (2007); "Fokus på lønsom vækst i praksis"; article 4.1 in Børsen Ledelseshåndbøger: Relationship Management; November 2007; Børsen Forum; Copenhagen; Denmark (in Danish).

Jørgensen; J.K. & Grønholdt; L. (2005); "Markedsudviklingsanalyse: Status og trends for de 500 største danske virksomheders markedsmæssige muligheder; udfordringer og trusler"; article 4.3 in Børsen Ledelseshåndbøger: Relationship Management; February 2005; and article 3.1 i Børsen Ledelseshåndbøger: Effektivisering; August 2005; Børsen Forum; Copenhagen; Denmark (in Danish).

Joyce; W.; Nohria; N. and Roberson; B. (2003a); What Really Works: The 4+2 Formula for Sustained Business Success; Harper Business; New York.

Joyce; W.; Nohria; N. and Roberson; B. (2003b); “A Formula for Sustained Success”; Optimize; 15 May; pp. 69-72.

Martensen; A. & Grønholdt; L. (2005); “Return on leadership”; Proceedings of the 8th International QMOD 2005 Conference: Quality Management and Organizational Development; Palermo; Italy; 29 June – 1 July 2005 (pp. 25-37). Palermo; Italy: University of Palermo; Italy; and University of Linköping; Sweden.

Miller; L. (2004); “Book review - What Really Works: The 4 + 2 Formula for Sustained Business Success”; Journal of Change Management; Vol. 4; No. 1 (March); pp. 83-85.

Nohria; N.; Joyce; W. and Roberson; B. (2003); ”What Really Works”; Harvard Business Review; Vol. 81; No. 7 (July); pp. 42-52.

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