Corporate growth: Our advice for directors is to buy “organic”
Abstract
Purpose
This paper aims to look at whether an organization should grow by acquisition or organic (internal) growth.
Design/methodology/approach
The study discusses problems with non‐organic growth and gives reasons why organic growth is a better alternative.
Findings
The study finds that firms relying on organic growth derive most of their expansion internally, by enhancing current customer relationships and building new relationships. Most importantly, organic growth is received with great favor by the financial markets; non‐organic is far less favored, if at all.
Practical implications
This paper provides executives with information on important factors to consider when determining growth plans
Originality/value
This paper is of particular value to CEOs and other board members.
Keywords
Citation
Dalton, D.R. and Dalton, C.M. (2006), "Corporate growth: Our advice for directors is to buy “organic”", Journal of Business Strategy, Vol. 27 No. 2, pp. 5-7. https://doi.org/10.1108/02756660610649994
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited