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Preprint . 2026
License: CC BY
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ZENODO
Preprint . 2026
License: CC BY
Data sources: ZENODO
ZENODO
Preprint . 2026
License: CC BY
Data sources: Datacite
ZENODO
Preprint . 2026
License: CC BY
Data sources: Datacite
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(Governance) Why Companies Turn Too Late: Strategic Inertia from Startup to Scale-Up

Authors: Huang, Qien;

(Governance) Why Companies Turn Too Late: Strategic Inertia from Startup to Scale-Up

Abstract

Why do companies often recognize the need for strategic change yet act only after critical windows have narrowed or closed? This paper argues that delayed strategic turns are not primarily the result of poor leadership, cognitive bias, or incentive failure, but a lifecycle-dependent outcome of organizational evolution. As firms grow from startup to scale-up, structures that improve efficiency—metrics, routines, governance layers, and strategic commitments—also reshape decision timing. External pressures become attenuated, internal signals increasingly filtered through established indicators, and corrective actions more costly to reverse. These dynamics raise decision thresholds precisely as the cost of delay accelerates. The paper develops a stage-based model distinguishing exploration, stabilization, and inflection regimes, showing how strategic inertia emerges predictably during growth rather than only at maturity. It introduces diagnostic indicators related to pressure transmission, signal integrity, and commitment irreversibility, and outlines governance interventions aimed at preserving responsiveness under scaling. The analysis reframes strategic inertia as a governance risk that can be detected and managed before performance deterioration becomes visible. ---Suggested citation:Huang, Q. (2026).Why Companies Turn Too Late: Strategic Inertia from Startup to Scale-UpZenodo. https://doi.org/10.5281/zenodo.18287053

Keywords

scale-up, inflection points, strategic inertia, organizational evolution, corporate governance, path dependence, decision latency, early warning indicators

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Green