Firm growth through disruption: Insights into internal dynamics

ABSTRACT

Studies examining how small firms grow have suggested that growth is complex due to ongoing disruptions. However, the dynamics of small firm growth remain underexplored. Using findings from a case study of a small firm, we illustrate that small firms grow by responding to nonroutine disruptions—disruptions that cannot be resolved using current knowledge. Nonroutine disruptions trigger one of two situations: one of ambiguity where individuals form divergent interpretations of the disruption, thereby experiencing high levels of tension, and one of certainty where individuals form convergent interpretations of disruption, thereby experiencing low levels of tension. To generate a novel response to a disruption, individuals must create an optimal level of tension, either by connecting divergent interpretations or breaking convergent ones. In explicating how this unfolds, we illustrate the internal dynamics of growth, occurring in the ebb and flow movement as individuals build new growth pathways in response to disruptions.

KEYWORDS:

• Disruption
• small firm growth
• dynamic adjustments

Disclosure statement

No potential conflict of interest was reported by the authors.