While a lot is known about organizational growth, little is understood about how to manage volatility that comes along with growth. This paper, using existing research in this area and the empirical findings of a study by Moreno et al. (2014), offers crucial insights about managing volatility for firms trying to grow at the pace of technological changes. An attempt is made to highlight the differences of growth and volatility in a language that is easily comprehensible to practitioners.
The paper is based on existing literature in the area of growth and on author’s personal interactions with the founders of small firms.
In this paper, it is argued that firm’s strategic orientations can be used as a contingency of growth–volatility relationship. In other words, firms with a strong entrepreneurial and market orientation are positioned to benefit from the pursuit of growth while still keeping the issues of volatility in control.
By clearly elucidating the concept of volatility and growth, the paper helps practitioners in finding ways of benefiting from growth and controlling unnecessary volatility.
This paper is among the limited research attempts addressing the concept of volatility. The finding that growth and volatility are inter-linked but different can be used effectively by practitioners.
