The Faster, The Better?: An Empirical Study On The Speed Of Strategic Change And Firm Survival And Performance

Abstract

This study questions the conventional wisdom that strategic change and a rapid pace of change are necessary for firm survival in a changing environment. Recognizing the potential costs of strategic change, we argue that conventional wisdom might be oversimplified. Drawing on the U.S. trucking industry and its deregulation, this paper concludes that mere change in strategy is insufficient to guarantee organizational survival and success, and hasty change may exert a negative impact on firm performance. Conclusions drawn from this study should be given appropriate caveats since we focus on conditions idiosyncratic to strategic change prompted by industry deregulation.