What happens to gazelles?

The importance of dynamic management strategy

Simon Parker, David J Storey, Arjen van Witteloostujin

Research output: Contribution to journalArticle

109 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)203-226
Number of pages24
JournalSmall Business Economics
Volume35
Issue number2
DOIs
Publication statusPublished - Sep 2010

Fingerprint

Firm growth
Gazelle
Management strategy
Strategic management
Gibrat's law
Logic
Management theory
Best practice
Economic environment
Firm performance
High-growth firms
Small firms
External environment

Keywords

  • firm growth
  • gazelles
  • Gibrat’s Law
  • strategic management theory
  • strategy variables

Cite this

What happens to gazelles? The importance of dynamic management strategy . / Parker, Simon; Storey, David J; van Witteloostujin, Arjen.

In: Small Business Economics, Vol. 35, No. 2, 09.2010, p. 203-226.

Research output: Contribution to journalArticle

Parker, Simon ; Storey, David J ; van Witteloostujin, Arjen. / What happens to gazelles? The importance of dynamic management strategy . In: Small Business Economics. 2010 ; Vol. 35, No. 2. pp. 203-226.
@article{60fdad9e35e74770b7dddcab6e3a6e3c,
title = "What happens to gazelles?: The importance of dynamic management strategy",
abstract = "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.",
keywords = "firm growth, gazelles, Gibrat’s Law, strategic management theory, strategy variables",
author = "Simon Parker and Storey, {David J} and {van Witteloostujin}, Arjen",
year = "2010",
month = "9",
doi = "10.1007/s11187-009-9250-2",
language = "English",
volume = "35",
pages = "203--226",
journal = "Small Business Economics",
issn = "0921-898X",
publisher = "Springer",
number = "2",

}

TY - JOUR

T1 - What happens to gazelles?

T2 - The importance of dynamic management strategy

AU - Parker, Simon

AU - Storey, David J

AU - van Witteloostujin, Arjen

PY - 2010/9

Y1 - 2010/9

N2 - 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.

AB - 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.

KW - firm growth

KW - gazelles

KW - Gibrat’s Law

KW - strategic management theory

KW - strategy variables

U2 - 10.1007/s11187-009-9250-2

DO - 10.1007/s11187-009-9250-2

M3 - Article

VL - 35

SP - 203

EP - 226

JO - Small Business Economics

JF - Small Business Economics

SN - 0921-898X

IS - 2

ER -