Factors Influencing Firm Sales Growth: An Instrumental Variable Analysis

  •  Abdisalan Salad Warsame    


Although several studies have been done on sales growth, the mistake was that firm growth and sales growth were understood as the same thing, using the same perspective and variables for both growth studies. This study takes different perspectives focusing merely on factors influencing sales growth using micro-level data from the World Bank Enterprises Survey (WBES) datasets to examine whether sales growth in sub-Sahara Africa has different stories to tell employing the OLS and 2SLS analyses. Unlike other studies, the results indicated that top management gender diversity has no correlation to sales growth, but temporary employees do. The results also reveal that the key drivers of a firm’s sales growth are skilled labour, labour productivity, and fixed assets, which are statistically significant and have a positive relationship with annual sales growth.

This work is licensed under a Creative Commons Attribution 4.0 License.
  • ISSN(Print): 1918-719X
  • ISSN(Online): 1918-7203
  • Started: 2009
  • Frequency: quarterly

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