In a study of 1,591 high-technology firms operating in Russia over the course of 2013-2017, we investigate the relationship between two alternative performance indicators, sales growth and profitability, that have demonstrated an inconsistent relationship in prior research. We demonstrate that the relationship between these indicators follows an inverted U-shaped curve and is moderated by firm size, age, financial leverage, and asset turnover. Specifically, small firms, mature firms, firms that borrow less, and firms with higher asset turnover are advantageously positioned to turn sales growth into profitability.
Anokhin et al. (Sun,) studied this question.