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What happens to gazelles? The importance of dynamic management strategy

journal contribution
posted on 2023-06-08, 05:24 authored by Simon C Parker, David Storey, Arjen van Witteloostuijn
The starting point of this study is Gibrat's Law, which is contrasted with strategic management. This logic is subsequently applied to a group of remarkably dynamic, high-growth firms: gazelles. Strategic management theory emphasises the importance of firms adjusting strategies in response to changes in the external environment. In our study, it is used to explain several key empirical findings using a novel British data set containing information on more than 100 gazelles. These findings help explain: (1) why Gibrat's Law of random firm growth processes does not generally hold, (2) which strategy and environmental variables have a predictable influence on firm performance and (3) why routine application of 'best practice' strategies is unlikely to foster firm growth in a changing economic environment. In so doing, this paper contributes to the large body of literature on small-firm growth.

History

Publication status

  • Published

Journal

Small Business Economics

ISSN

0921-898X

Publisher

Springer

Issue

2

Volume

35

Page range

203-226

Pages

24.0

Department affiliated with

  • Business and Management Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2012-02-06

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