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This study examines the ways in which firms recover from stagnation or sales decline, with a focus on two key aspects: traditional high-growth companies and growth restarts within the framework of organizational life cycle theory. Analyzing a dataset of 1883 Russian firms from 2013 to 2021, this research employs logistic regression to identify factors that promote growth. These factors include the youth of the firm, investment intensity, and significant sales drops during periods of stagnation. The study introduces a new economic category, termed ‘restarting growth’, which signifies a firm’s sustained expansion following an extended period of stagnation. This category is crucial for identifying factors that increase the likelihood of a company transitioning to growth after prolonged stagnation or production downturn. The findings of this study reveal that firms that are younger, invest more intensively in fixed capital, and have experienced a larger sales drop during a period of stagnation are more likely to transition to growth. These results are juxtaposed with the growth factors characteristic of traditional high-growth companies, as well as with the theoretical approaches explaining growth restarts within the framework of organizational life cycle theory. Such distinctions are pivotal both for academic understanding and practical applications in discerning how companies rebound from crises. Moreover, the research identifies several highly significant factors—indicators that can assist investors in selecting promising firms for financing.
Spitsin et al. (Sat,) studied this question.