Corporate growth

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.