THE EMPIRICAL STUDY OF THE CORRELATION BETWEEN THE DOMINANT STRATEGY OF “INFLEXIBLE HIPPOS” AND THE ORGANIZATIONAL LIFE CYCLE

Abstract

The development of companies is characterised by the adoption of certain stages of business development, the availability of resources and outcomes. This developmental process is inherently cyclical, requiring companies to remain flexible and adaptive continuously. Each phase of the life cycle is characterised by unique challenges, perspectives and inherent features that require strategic modifications to maintain and enhance competitiveness. A holistic interpretation that integrates both life cycle phases and strategic approaches is necessary for a thorough understanding of a company’s success and market performance. The purpose of this paper is to explore the correlation between the dominant strategy employed by industry leaders, known as “inflexible hippos,” and the various stages of the organizational life cycle. The research objects are the dominant strategy “inflexible hippos” and the ten phases of the organizational life cycle: Courtship, Infant, Go-go, Adolescence, Prime, Maturity, Aristocracy, Early bureaucracy, Bureaucracy, and Death. The subject of the research is to verify the existence of a connection and its type between the research objects. The objective of the study is to ascertain the existence and nature of the connection between these research objects. The research methodology employed morphological, analytical, statistical assessment, and comparative analysis techniques. By comparing morphological statements formulated with expert input, evidence was found regarding the existence and significance of the correlation strength. The study revealed that the correlation between competitive strategy and the phases of the company’s life cycle is strongest in the “Maturity” and “Aristocracy” phases, which dictate the sequence of organizational development. The tightest connection with direct independent mutual influence is observed in the “Go-Go”, “Adolescence”, “Prime”, “Reconstruction”, and “Bureaucracy” phases. The context dependence of this correlation characterizes ongoing change processes: the company retains old features of organizational development while simultaneously acquiring new ones. Evaluating the timeliness and efficiency of managerial decision-making based on the alignment of competitive strategy with the company’s life cycle, influenced by both external and internal factors, is a critical stage in the company’s development process. This study can help companies to develop more effective competitive strategies that respond to their current needs. This can lead to improving companies’ competitiveness, selecting appropriate and effective project actions and their success in the market.