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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Ingår i: 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, s. 537-544

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Publicerad: 2008-12-09


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


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.


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


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