Growth intention has been theorized to play an important role in entrepreneurial behavior, particularly firm growth. Growth has also been argued to affect intention, forming a feedback loop. However, there is evidence of an endogeneity problem in earlier research on the topic. Notably, a few studies that have analyzed these feedback loops empirically have used cross-lagged panel models that ignore the persistent differences between companies. In this constructive replication study, we use a unique panel of software companies in Finland to demonstrate that the role of growth intention in SMEs’ actual future growth is more complex than previously thought. Using random-intercept cross-lagged panel models shows that the effect is not a within-firm year-to-year as previously modeled. Instead, growth and intention levels tend to be more trait-like and correlate on the between rather than within the firm level.
