Using dynamic panel estimators, based on a sample of 177 small-and medium-sized Portuguese hotels for the period 2000–2009, this paper studies the determinants of growth in small- and medium-sized Portuguese hotels. The multiple empirical evidence obtained allows the authors to conclude that: (a) small hotels grow more quickly than large ones, but only for lower levels of size; (b) age and the financial crisis of 2008 are restrictive determinants of growth in small- and medium-sized Portuguese hotels; and (c) cash flow, government subsidies and labour productivity are positive determinants of growth in small- and medium-sized Portuguese hotels. The authors also find that the financial crisis has increased the importance of cash flow and government subsidies for increased growth in small- and medium-sized Portuguese hotels. Finally, the financial crisis of 2008 has contributed to the role of debt and interest paid as restrictive determinants of growth in these hotels.
AlmusM.NerlingerE. (1999), ‘Growth of new technology-based firms: which factors matter?’, Small Business and Economics, Vol 13, No 2, pp 141–154.
2.
Álvarez-GonzálezJ.Gonzáles-MoralesM. (2014), ‘The role of knowledge business services in Spanish local tourist production systems’, Tourism Economics, Vol 20, No 2, pp 355–371.
3.
ArellanoM.BondS. (1991), ‘Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations’, Review of Economic Studies, Vol 58, No 2, pp 277–297.
4.
AudretschD.KlompL.SantarelliE.ThurikA. (2004), ‘Gibrat's law: are the services different?’, Review of Industrial Organization, Vol 24, No 3, pp 301–324.
5.
BannòM.PiscitelloL. (2010), ‘The effectiveness of incentives to firms' outward internationalization’, Applied Economics Letters, Vol 17, No 17, pp 1729–1733.
6.
BerniniC.PellegriniG. (2011), ‘How are growth and productivity in private firms affected by public subsidy? Evidence from a regional policy’, Regional Science and Urban Economics, Vol 41, No 3, pp 253–265.
7.
BigstenA.GebreeyesusM. (2007), ‘The small, the young, and the productive determinants of manufacturing firm growth in Ethiopia’, Economic Development and Cultural Change, Vol 55, No 4, pp 813–840.
8.
BlundellM.BondS. (1998), ‘Initial conditions and moment restrictions in dynamic panel data models’, Journal of Econometrics, Vol 87, No 1, pp 115–143.
9.
BrunoG. (2005), ‘Approximating the bias of LSDV estimator for dynamic unbalanced panel data models’, Economic Letters, Vol 87, No 3, pp 361–366.
10.
ChenM.-H. (2013), ‘Risk determinants of China's hotel industry’, Tourism Economics, Vol 19, No 1, pp 77–99.
11.
ChenT.-S.LinM.-J.ChangC.-H. (2006), ‘The influence of intellectual capital on new product development performance – the manufacturing companies of Taiwan as an example’, Total Quality Management, Vol 17, No 10, pp 1323–1339.
12.
CorgelJ.GibsonS. (2005), ‘The use of fixed rate and floating rate debt for hotels’, Cornell Hotel and Restaurant Administration Quarterly, Vol 46, No 4, pp 413–430.
13.
DevesaS.JesúsM.PeñalverM.FelipeL. (2013), ‘Size, efficiency and productivity in the Spanish hotel industry-independent properties versus chain-affiliated hotels’, Tourism Economics, Vol 19, No 4, pp 801–809.
14.
GibratR. (1931), Les inégalités économiques, Librairie du Recueil Sirey, Paris.
15.
de CarvalhoP. GuedesNunesP. MaçãsSerrasqueiroZ. (2013), ‘Growth determinants of small and medium-sized fitness enterprises: empirical evidence from Portugal’, European Sport Management Quarterly, Vol 13, No 4, pp 428–449.
16.
Guisado-GonzálezM.Guisado-TatoM.Vila-AlonsoM. (2012), ‘How public funding and firms' innovation strategies affect the innovation of the Spanish hotel industry’, Innovation Journal: The Public Sector Innovation Journal, Vol 17, No 2, pp 1–18.
17.
GujaratiD.PorterD. (2010), Essentials of Econometrics, 4th edn, McGraw-Hill International, New York.
18.
HadadS.HadadY.MalulM.RosenboimM. (2012), ‘The economic efficiency of the tourism industry: a global comparison’, Tourism Economics, Vol 18, No 5, pp 931–940.
19.
HonjoY.HaradaN. (2006), ‘SME policy, financial structure and firm growth: evidence from Japan’, Small Business Economics, Vol 27, Nos 4–5, pp 289–300.
20.
HyytinenA.ToivanenO. (2003), ‘Asymmetric information and the market structure of the venture capital industry’, Journal of Financial Services Research, Vol 23, No 3, pp 241–249.
21.
JangS.TangC.-H.ChenM. (2008), ‘Financing behaviors of hotel companies’, International Journal of Hospitality Management, Vol 27, No 3, pp 478–487.
22.
JovanovicB. (1982), ‘Selection and evolution of industry’, Econometrica, Vol 50, No 3, pp 649–670.
23.
KaradenizE.KandirS.BalcilarM.OnalY. (2009), ‘Determinants of capital structure: evidence from Turkish lodging companies’, International Journal of Contemporary Hospitality Management, Vol 21, No 5, pp 594–609.
24.
KochA.SpäthJ.StrotmannH. (2013), ‘The role of employees for post-entry firm growth’, Small Business Economics, Vol 41, No 3, pp 733–755.
25.
MadanK. (2007), ‘An analysis of the debt-equity structure of leading hotel chains in India’, International Journal of Contemporary Hospitality Management, Vol 19, No 5, pp 397–414.
26.
OrtegaB.ChicónC. Benavides (2013), ‘Determinants of regional labour productivity in the hospitality industry in Spain, 1996–2004’, Tourism Economics, Vol 19, No 2, pp 393–414.
27.
ÖzerB.YamakS. (2000), ‘Self-sustaining pattern of finance in small businesses: evidence from Turkey’, International Journal of Hospitality Management, Vol 19, No 3, pp 261–273.
28.
PiergiovanniR.SantarelliE.KlomL.ThurikA. (2003), ‘Gibrat's Law and firm size/firm growth relationship in Italian small scale services’, Revue d'Economie Industrielle, Vol 102, No 1, pp 69–82.
29.
RogersM. (2004), ‘Networks, firm size and innovation’, Small Business Economics, Vol 22, No 2, pp 141–153.
30.
RufinR. (2007), ‘Sales growth of Spanish tourist firms: some implications of Gibrat's Law on marketing management’, Tourism Management, Vol 28, No 3, pp 788–805.
31.
SchoonjansB.Van CauwenbergeP.BauwhedeH. (2013), ‘Formal business networking and SMEs growth’, Small Business Economics, Vol 41, No 1, pp 169–181.
32.
SerrasqueiroZ.ArmadaM.NunesP. Maçãs (2011), ‘Pecking order theory versus trade-off theory: are service SMEs' capital structure decisions different?’, Service Business, Vol 5, No 4, pp 381–409.
33.
SharmaA. (2007), ‘Small hotel financing in Sub-Saharan Africa: evidence from Tanzania’, Journal of Hospitality Financial Management, Vol 15, No 2, pp 25–38.
34.
SiegelD.WessnerC.BinksM.LockettA. (2003), ‘Policies promoting innovation in small firms: evidence from the US and UK’, Small Business Economics, Vol 20, No 2, pp 121–127.
35.
SuttonJ. (1997), ‘Gibrat's legacy’, Journal of Economic Literature, Vol 35, No 1, pp 40–59.
36.
ThomasR.ShawG.PageS. (2011), ‘Understanding small firms in tourism: a perspective on research trends and challenges’, Tourism Management, Vol 32, No 5, pp 963–976.
37.
TsaiH.PanS.LeeJ. (2011), ‘Recent research in hospitality financial management’, International Journal of Contemporary Hospitality Management, Vol 23, No 7, pp 941–971.
UpnejaA.DalborM. (2001), ‘An Examination of capital structure in the restaurant industry’, International Journal of Contemporary Hospitality Management, Vol 13, No 2, pp 54–59.
40.
VermoesenV.DeloofM.LaverenE. (2013), ‘Long-term debt maturity and financing constraints of SMEs during the global crisis’, Small Business Economics, Vol 41, No 2, pp 433–448.
41.
WiboonchutikulaP. (2002), ‘Small and medium enterprises in Thailand: recent trends’, Small Business Economics, Vol 18, Nos 1–3, pp 211–224.
42.
World Trade Report (2006), Exploring the Links between Subsidies, Trade, and the WTO, World Trade Organization, Geneva.
