This paper examines economizing and strategizing activities from an Austrian economics perspective. Under these market assumptions, the question of whether a firm should economize or strategize becomes a question of dynamics; of when a firm should economize or strategize. The transitioning between economizing and strategizing exhibits a cadence that is affected by firm resources and market forces. The result is a strategic loop that can be used to describe a firm's strategic posture with regard to economizing and strategizing. A generalized demonstration of the theory, applying firm resources to the strategic loops, provides logic contrary to the conventional wisdom of small firms' strategic advantage: Small firms are less adaptable to dynamic markets than large firms.