Internal Barriers to Growth : A Qualitative Study on High-growth Firms' Perceived Internal Barriers

Abstract: The purpose of this study is to examine what internal barriers arise and how these have been managed during different stages of growth in Swedish high-growth firms. The study’s model of analysis is based on Barth’s (2004) framework of barriers and Greiner’s (1972) model of five phases of growth. Through nine semi-structured interviews with senior managers, the study examines internal tangible and intangible barriers experienced by Swedish high-growth firms. The study’s findings indicate that the companies, initially characterized by a lack of structure, need formal systems due to their rapid growth. The introduction of the systems creates new barriers, making competent leadership a crucial requirement. Barriers related to planning and strategy decrease in later phases of growth, indicating that these must be overcome for successful growth. Overall, the study suggests that internal barriers differ in the respective growth phases and thus emphasizes the importance of adaptive management.