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Relation of Dominant Problems to Stages of Growth in Technology-Based New Ventures
... According to life cycle theory (e.g., Adizes, 1979;Dodge & Robbins, 1992;Kazanjian, 1988), businesses experience similar challenges at specific stages of their development, often related to firm age, size, volume of activities, and similar factors. Many of these challenges are predictable, allowing managers to devise appropriate strategies to address them (e.g., Adizes, 1979;Churchill & Lewis, 1983;Dodge & Robbins, 1992;Kazanjian, 1988). ...
... According to life cycle theory (e.g., Adizes, 1979;Dodge & Robbins, 1992;Kazanjian, 1988), businesses experience similar challenges at specific stages of their development, often related to firm age, size, volume of activities, and similar factors. Many of these challenges are predictable, allowing managers to devise appropriate strategies to address them (e.g., Adizes, 1979;Churchill & Lewis, 1983;Dodge & Robbins, 1992;Kazanjian, 1988). In the early years after founding, firms are typically small, inexperienced, and characterized by an informal structure, limited resources and capabilities, as well as minimal economies of scale that result in higher operational costs. ...
... As they grow, firms that reach a medium size gain more resources and capabilities, a more formalized structure, and improved decision-making. Mature firms usually have abundant resources and capabilities and also acquire a more formal, bureaucratic structure (e.g., Adizes, 1979;Churchill & Lewis, 1983;Dodge & Robbins, 1992;Kazanjian, 1988). While large firms benefit from economies of scale, they are often less flexible and entrepreneurial (cf. ...
... Research on the entrepreneurial process often focuses on stages such as idea generation, business concept development, business plan creation, and growth (Moroz & Hindle, 2012). However, the terminology and emphasis of each stage can vary based on the researcher's perspective (Fishbein & Ajzen, 1975;Kazanjian, 1988;Bhave, 1994;Ucbasaran et al., 2001;Polishchuk, 2023). Paschen (2017) categorizes this process into pre-startup, startup, and growth stages. ...
... The third step involves transforming recognized opportunities into business ideas, which entails identifying and validating potentially successful business ideas (Brockner et al., 2004;Lee & Ahn, 2018). This step also includes presenting a business concept that combines value creation and delivery to customers (Kazanjian, 1988;Bhave, 1994;Bang et al., 2014;Lee & Ahn, 2018). ...
... The fourth step, technology development and resource acquisition, presents varying perspectives among researchers. Kazanjian (1988) includes both resource acquisition and technology development in the preparation stage, while Paschen (2017) considers these necessary from the preparation to the startup stage. Bhave (1994) views them as activities during the startup phase. ...
This is a case study on a university’s support for entrepreneurs preparing startups. Previous studies have focused on startups within universities, but this study differs in its focus on support for external entrepreneurs. First, university startup support worked in the form of open innovation for those preparing to start a business. In other words, performance varied depending on the degree to which entrepreneurs accepted the support. Second, this study showed that, unlike previous studies, the process of preparing to start a business is nonlinear. Third, startups are largely divided into small and mediumsized businesses and innovative businesses, and a new hybrid business type was identified through university support. This study shows that university support for startups is not limited to the In-Out model, which uses university knowledge and technology, but an Out-In model is also possible. Additionally, startup support can be added as one of the entrepreneurial university’s activities.
... For example, Smith et al. (1985) proposed a three-stage model that includes inception, high growth, and maturity. Kazanjian (1988) conceptualized a similar model with four stages: conception and development, commercialization, growth, and stability. We adopt the three-stage model discussed by Smith et al. (1985) due to its parsimony, and additional stages (such as "commercialization" in the model by Kazanjian, 1988) are not needed to convey the general dynamics discussed in this section. ...
... Kazanjian (1988) conceptualized a similar model with four stages: conception and development, commercialization, growth, and stability. We adopt the three-stage model discussed by Smith et al. (1985) due to its parsimony, and additional stages (such as "commercialization" in the model by Kazanjian, 1988) are not needed to convey the general dynamics discussed in this section. ...
... At the inception stage of an entrepreneurial venture, there is typically a single entrepreneur or a small entrepreneurial team that is focused on developing a product/service to offer the market. There is minimal structure and formality at this stage (Kazanjian, 1988) because activity occurs with the entrepreneur or the founding team. If a blameworthy event occurs at this stage of the organizational life cycle, it is likely to be the least challenging or complex stage to attribute blame for several reasons. ...
... As opposed to later funding rounds (e.g., Series A investments, initial public offerings), new ventures at the seed funding stage have neither full-fledged products nor market responses (Kazanjian 1988), let alone profitability outlooks. Therefore, the venture's prospects are highly uncertain. ...
... Therefore, startups should protect their brands right from the start, and they should build strategies around how to build a great brand, including trust. (Investor I) In the earliest days, progress in terms of product development is naturally lowest (Kazanjian 1988), suggesting that the information cue from trademark applications on this progress is particularly important. When product development advances, prototypes are more developed and first (test) customer feedback is available (Hsu and Ziedonis 2013), reducing trademark applications' informational character. ...
... Thus, what qualifies as a marketing-related legitimizing force must be evaluated against the new venture's current situation since venture capitalists' legitimacy considerations can change quickly, a notion that certainly reflects the highly dynamic nature of a young, evolving venture. We find that trademark applications are a particularly important information cue during ventures' first months, which challenges, at least for this specific marketing action, the often shared wisdom (e.g., in organizational life cycle models) (Kazanjian 1988) that marketing action is useful only when a fully developed product is ready for commercialization. In this way, founders learn about the importance of timing in marketing-related decisions. ...
New ventures are essential for developing innovations and generating economic and societal value, but they depend on external resources, especially from venture capitalists, who provide seed funding to make necessary advances in the development and commercialization of their innovative products. From the marketing discipline’s perspective, the question is whether marketing actions play a role in this early acquisition of critical resources. Building on organizational legitimacy theory, we argue that trademark applications are important from day one, as they send important information cues to venture capitalists (e.g., on marketing-related professionalism) that foster the acquisition of venture capital (VC) seed funding. We build a dataset using Crunchbase and USPTO data that follows 5,370 ventures founded between 2007 and 2010 over several years up to 2018. We find that new ventures that file trademark applications have an increased likelihood of acquiring VC seed funding compared to firms that do not file trademark applications. This association is strongest during the first 100 days and diminishes about 1,000 days after foundation. The effect is particularly pronounced in industries characterized by low technological uncertainty and when new ventures do not operate from a location with a cluster of startups, such as Silicon Valley.
... then, the startup has often been compared with a living organism that transforms through various developmental stages, meeting the required milestones that are not easily reversible (Kazanjian, 2016;Salamzadeh & Kirby, 2017). The primary assumption in the phase approach is that the firm follows a pre-determined pattern. ...
... Network efficiency defines the diversity of information and capabilities per alliance (Baum et al., 2000). The startup focuses on technology development in the creation stage (Kazanjian, 2016). Powell et al., (1996) posit that the locus of innovation is no longer an individual firm but rather a collaborative effort, mainly where the knowledge base of the product lies in the intersection of various disciplines. ...
... Hence, the requirement for a tech startup to approach heterogeneous network partners is higher in the creation stage. As the firm moves to the stability stage, the function is to commercialize the invention and produce it repetitively (Kazanjian, 2016). Partanen et al., (2014) claim that a portfolio of alliances with suppliers, distributors, and customers helps new ventures acquire resources required for commercialization. ...
... then, the startup has often been compared with a living organism that transforms through various developmental stages, meeting the required milestones that are not easily reversible (Kazanjian, 2016;Salamzadeh & Kirby, 2017). The primary assumption in the phase approach is that the firm follows a pre-determined pattern. ...
... Network efficiency defines the diversity of information and capabilities per alliance (Baum et al., 2000). The startup focuses on technology development in the creation stage (Kazanjian, 2016). Powell et al., (1996) posit that the locus of innovation is no longer an individual firm but rather a collaborative effort, mainly where the knowledge base of the product lies in the intersection of various disciplines. ...
... Hence, the requirement for a tech startup to approach heterogeneous network partners is higher in the creation stage. As the firm moves to the stability stage, the function is to commercialize the invention and produce it repetitively (Kazanjian, 2016). Partanen et al., (2014) claim that a portfolio of alliances with suppliers, distributors, and customers helps new ventures acquire resources required for commercialization. ...
... For example, Smith et al. (1985) proposed a three-stage model that includes inception, high growth, and maturity. Kazanjian (1988) conceptualized a similar model with four stages: conception and development, commercialization, growth, and stability. We adopt the three-stage model discussed by Smith et al. (1985) due to its parsimony, and additional stages (such as "commercialization" in the model by Kazanjian, 1988) are not needed to convey the general dynamics discussed in this section. ...
... Kazanjian (1988) conceptualized a similar model with four stages: conception and development, commercialization, growth, and stability. We adopt the three-stage model discussed by Smith et al. (1985) due to its parsimony, and additional stages (such as "commercialization" in the model by Kazanjian, 1988) are not needed to convey the general dynamics discussed in this section. ...
... At the inception stage of an entrepreneurial venture, there is typically a single entrepreneur or a small entrepreneurial team that is focused on developing a product/service to offer the market. There is minimal structure and formality at this stage (Kazanjian, 1988) because activity occurs with the entrepreneur or the founding team. If a blameworthy event occurs at this stage of the organizational life cycle, it is likely to be the least challenging or complex stage to attribute blame for several reasons. ...
Blame is a feature of everyday life, whether or not that blame is directed toward an individual for a willful act of moral transgression, an entrepreneur for taking reckless action that puts the venture and its employees at risk, or a company for the violation of some social norm. Blame identifies morally wrong behavior and has the power to pressure individuals to adhere to a set of norms. More broadly, blame is worthy of scholarly consideration because it is a reality for organizations and the individuals who lead them.
Blame is multifaceted because it entails psychological, social, and legal issues. Historically, psychological theories of blame emphasized the rational and prescriptive—how blame attribution processes ought to occur to produce an accurate blame attribution, for example. Over time, psychological theories started to incorporate nonrational elements—such as how socially attractive the potentially blameworthy is, whether the blameworthy engage in “positive” or “negative” actions that are unrelated to the blameworthy act, and so forth. Blame becomes more complicated when it moves from a specific individual (e.g., an entrepreneur) to an aggregate group (a venture) or an abstract entity (a corporation). The aggregation of blame creates an apportionment problem in that it is unclear who within a group ought to be blamed. This complication is further illustrated in the court of law. For instance, courts in the United States have struggled to consistently judge cases of corporate criminal liability due, in part, to the difficulty of knowing how to assign blame to an abstract entity. Part of the challenge relates to establishing a criminal “state of mind” to a corporation, and the broader question whether a corporation can even have such a state of mind (or if that state of mind resides in its leaders, employees, etc.).
Management research on blame is limited. Existing work examines blames-shifting tactics, such as scapegoating, wherein organizations place blame on specific organizational actors who may or may not have any direct connection to the blameworthy event. Importantly, blame attributions can flow both ways: employees may sometimes blame the broader organization, despite the employees’ involvement in the blameworthy act.
Given the complexities of blame, entrepreneurs face unique blame-related challenges at different points of their venture’s life cycle. At early stages of the life cycle, blameworthy acts are unlikely to have significant societal impact, and attributions are relatively simple due to the minimal number of actors involved in the venture. As the venture grows, the impact of a blameworthy act grows in magnitude, as does the difficulty of accurately apportioning blame for the act among the numerous actors involved. If the venture eventually adopts a formal corporate structure, it also adopts corporate characteristics such as dispersed decision-making processes, a board of directors that are meant to provide some level of oversight, and so forth. This formal corporate structure introduces the challenge of establishing a “state of mind” for a blameworthy act. Ultimately, blame affects entrepreneurs, their ventures, and the corporations that eventually grow from them, and is worth further scholarly investigation.
... Its value lies in the acknowledgement of the dynamic and changing nature of organizations" (Bonn & Pettigrew, 2009, p.5). The researchers have used the organizational life cycle to identify the appropriate management activities for each phase of OLC (Kazanjian 1988;Kazanjin & Drazin, 1989;Phelps, Adams & Bessant, 2007;Lu & Magjot, 2008;Smith, Mitchell & Summer, 1985) or innovation process through OLC (Koberg, Uhlenbruck & Sarason, 1996) or the shifting criteria (Tibben-Lembke, 2003;Quinn, E. & Cameron, K., 1983) as we will use in that scientific paper to explore the role of entrepreneur relationship and the nature of that relation within different phases of OLC. ...
... The researchers used the organizational life cycle to identify the appropriate management activities for each of its phases (Kazanjian 1988;Kazanjin & Drazin, 1989;Phelps, Adams & Bessant, 2007;Lu & Magjot, 2008;Smith, Mitchell & Summer, 1985) or innovation process (Koberg, Uhlenbruck & Sarason, 1996) or the shifting criteria (Tibben-Lembke, 2003;Quinn, E. & Cameron, K., 1983) as we are using it in this scientific paper to explore the role of entrepreneur relationship and the nature of that relation within different phases of the organizational life cycle. ...
This study examined the nature of networks in entrepreneurial ventures depending on the industrial life cycle. And to identify the role of network on the entrepreneurial venture, the ARA concept and the industrial life cycle were used in parallel to three entrepreneur venture cases: Polaris AB, Index Braille AB and Liko AB. After analyzing the primary data that consists of a total of 65 personal interviews with 38 respondents, the results showed that the entrepreneur is mostly depending on the coherent social close network at the start-up and the earlier growth stages, but after attaining a certain decline or checkout, he is starting to lose the ties, and at the later stages, he is depending more on the strategic network and keeping the close strong social bonds.
... Here, the information systems discipline, which views stage models as both theories and IT artifacts (Poeppelbuss et al., 2011), has made substantial contributions to research on firm growth, paying special attention to DTs in the organizational life cycle (Grover & Segars, 2005;Nolan, 1979;Solli-Saether & Gottschalk, 2010;Tumbas et al., 2015). During the metamorphosis from a loosely knit startup to a resource-mature company, firms face several challenges viewed as "dominant problems" (Kazanjian, 1988;Solli-Saether & Gottschalk, 2010) or "crises" (Greiner, 1989;Nolan, 1979;Scott & Bruce, 1987), which can be linked to distinctive stages-or phases-in these growth models, each with its own characteristics (Adizes, 1979;Greiner, 1989;Scott & Bruce, 1987). Growth models support anticipating when and which key requirements and challenges are likely to occur and how these can be dealt with (Churchill & Lewis, 1983;Scott & Bruce, 1987;Solli-Saether & Gottschalk, 2010). ...
... From a theoretical perspective, growth models support a better understanding of organizations' complexity and ambiguity when growing (Es-Sajjade et al., 2021). From a practical perspective, their implications can enhance organizational performance (Kazanjian, 1988) and enable founders and executive managers to better understand growth-related challenges to prepare their organizations for the transition from one stage to another (Scott & Bruce, 1987;Solli-Saether & Gottschalk, 2010). ...
We contribute to digital entrepreneurship research by adapting growth models to better reflect the dynamics of entrepreneurial growth trajectories and increasing digital technology pervasion in digital startups. By grounding our findings in a dataset that includes interviews with founders and executive managers of 24 digital startups from eight countries, we propose three directions for advancing theory that supports a better understanding of the complexity and ambiguity of digital startups when growing. Directions I and II aim at revising and extending established growth models to support research on attributes that better capture the increasing digital technology pervasion in digital startups. In direction III, we explore seminal research on dynamic states that contradict the dominant view of deterministic stages in growth model research and illustrate the need to integrate both approaches when designing new theoretical growth models by presenting four archetypes of digital infrastructure evolution.
... Geralmente, os modelos apresentam as fases de nascimento, crescimento, maturidade, renascimento e declínio (GREINER, 1972;MILLER e FRIESEN, 1984). Entretanto, alguns modelos não consideram a etapa de declínio ou morte (QUINN e CAMERON, 1983;KAZANJIAN, 1988). Para Hanks et al. (1993), o declínio de uma empresa pode ocorrer, a partir de qualquer estágio. ...
... Como alternativas, foram utilizados os modelos de ciclo de vida, que têm como foco, pequenas empresas, empresas de alta tecnologia ou modelos gerais mais citados, cujas etapas foram apresentadas por meio do quadro 1, sendo eles: Greiner (1972), Churchill e Lewis (1983), Scott e Bruce (1987), Hanks et al. (1993), Lester, Parnell e Carraher (2003), Lahorgue (2005), Frohlich, Rossetto e Silva (2007), Mount, Zinger e Forsyth (1993), Dodge e Robbins (1992) e Kazanjian (1988). ...
Empresas de desenvolvimento de software incubadas possuem riscos específicos, de acordo com a fase do ciclo de vida em que se encontram. Identificar esses riscos, de acordo com as etapas pelas quais as empresas passam, poderá auxiliar estas empresas a aumentar a chance de sucesso dos seus projetos. Assim, este artigo tem como objetivo, selecionar o modelo de ciclo de vida organizacional mais aplicável a empresas de desenvolvimento de software incubadas. O método de pesquisa utilizado foi a Modelagem Matemática, com aplicação da Lógica Fuzzy, que obteve, como resultado, a seleção de um modelo de ciclo de vida, de acordo com os critérios propostos. Palavras-chave: Empresas de desenvolvimento de software incubadas; Ciclo de vida organizacional; Lógica Fuzzy.
... Numerous studies on organizational growth have asserted the limited ability of studies to determine growth. However, despite previous studies having put forward several determinants of organizational growth, organization theory, and strategy, researchers have thus far not reached any consensus on the factors that lead to organizational growth (Davidsson, 1991;Kazanjian, 1988;Whetten, 1987). ...
... Nonetheless, several studies on organizational growth have asserted their limitations in determining growth. Indeed, previous studies have suggested that despite the existence of several determinants of organizational growth within strategy and organization theory, researchers have not been able to reach a consensus regarding the factors that lead to organizational growth (Davidsson, 1991;Kazanjian, 1988;Whetten, 1987). ...
Research aims: This study aims to investigate the growth of Indonesian Islamic banks and explore the determinants of organizational growth from different perspectives through climate factors, namely clarity, standard, commitment, communication, responsibility and teamwork, and support. The study also attempts to develop a model to measure the growth of Islamic banking institutions. Only limited studies have thus far explored this issue, with this study trying to fill the gap.Design/Methodology/Approach: This paper drew upon theories and arguments from the “climate” and “growth” areas and identified organizational climate as one of the main topics affecting Islamic banks. Grounded in a review of the mutual impact of organizational climate and growth constructs, the authors developed research propositions and discussed the implications of the proposed relationships for both.Research findings: Despite Islamic banks having been established and prospered for 28 years, supported by Indonesia having the largest Muslim population of any country in the world, the development of Islamic banks in Indonesia has been inferior to that of conventional banks. This paper argues that organizational climate must be considered an important factor in enhancing Indonesian Islamic banks' quality. It is because the essence of its climate may help an organization become more effective and generate a better perception, with the climate being used to improve the organization’s quality of management.Theoretical contribution/Originality: By combining the aspects of “climate” and “growth” from earlier studies and categorizing them by organizational studies and a comprehensive literature review, this study proposes a model specific to the banking institution. The study offers a conceptual model for the organizational climate in Islamic banking institutions and argues that organizational climate can be used to determine organizational growth in Indonesian Islamic banks.Practitioner/Policy implication: Based on its proposed conceptual model, this study is expected to contribute knowledge of Indonesian Islamic banks, policies, stakeholders, regulators, and government. The research explores various related studies in organizational growth from a climate perspective. Further, this study's results will be of significant practical assistance to the managers of Islamic banks and policymakers in developing climate mechanisms for Islamic banking growth. Moreover, this study significantly contributes to economic growth's sustainability and enhances banks’ growth.Research limitation/Implication: While several factors may be used to predict and determine growth, this study used climate factors to determine the growth of Islamic banking institutions. Thus, it is necessary to explore various factors to develop further studies and add new insight to determine organizational growth.
... Different problems must be addressed during different stages of growth, resulting in the need for different management skills, priorities, and structural configurations over the development of the firm. Empirical studies have looked into managerial issues and the problems of firms of different sizes and growth rates (Flamholtz, 1986;Fombrun & Wally;Hanks, Watson, Jansen, & Chandler, 1993;Kazanjian, 1988;Kazanjian & Drazin, 1990). These studies find that small firms are not just scaled down versions of large firms, which is in itself a valuable contribution. ...
... There is a rich empirical literature dealing with the consequences of organic growth (e.g., Flamholtz, 1986;Kazanjian, 1988). Similarly, scholars have examined the consequences of acquiring and absorbing another firm (e.g., Graebner, 2004). ...
... One answer to the question posed above is a model initially suggested by Child and Kiesar, who believed that any "sociologically valid theory of organization must take cultural settings into account" and that the personal ideas and preferences of top managers and administrators, including those derived from their cultural backgrounds and experiences, were incorporated into the policies that they adopted for their organizations regarding strategies and organization and the roles and expected behaviors of members of the organization (e.g., German top managers preferred centralized decision-making. 101 Child and Kiesar began with what they referred to as "an oversimplification" of the contingency view of the causal influences on organizational structure that began with "context" and then ran to "structure", "roles" and "behaviors". They then argued that "[a]t every point . . . in the causal chain posited by culture-free contingency analysis, other influences, mostly cultural in origin, are likely to interpose". ...
... Other issues that Kazanjian identified as external relations, production and people factors included issues that fit under the general topic of resource acquisition-secure adequate financial resources (external relations); recruit board members and key outside advisors (external relations); develop reliable supplier network (production); and recruit qualified personnel (people). 101 Finally, Terpstra and Olson identified the following potential problems for growing firms that fit under the general issue of human relations-training and development; employee satisfaction and morale; turnover and retention; and general human resource management problems. 102 The issues identified by Hendrickson and Psarouthakis correspond to the view of an organization as a dynamic social system that seeks and obtains required inputs and uses conversion or transformation processes to create outputs (i.e., products or services) that can be sold or traded in order to attain financial viability and acquire additional inputs to sustain the system. ...
An organization is any group of people with a common objective. Simply put, two or more people may band together to form an organization because they determine that working together is a more effective means for creating value than if each of them continued to work separately. While a good deal of focus is placed on situations where the members have come together to pursue for-profit business activities, the term “organization” is broad enough to include all associations, institution, companies and other groups that have been formed and are being operated for a specific purpose. This Work provides a brief introduction to the theory and study of organizations, sometimes referred to as organizational studies. The field of organizational studies is based on pursuing a better understanding of the structured processes that emerge within organizations to guide how the members interact with one another to pursue their mutually agreed goals and objectives. Among the key topics covered in this Work are popular definitions of the term “organizations” and theories regarding the purposes of organizations; how organizations create value for the members of the organization and society as a whole; descriptions of the various internal and external stakeholders of an organization, including a review of their contributions and expectations; the fundamental elements of organizational management, including structure, culture, design and environmental factors; an overview of the academic foundations for organizational studies; a description of some of the key determinants of organizational effectiveness; and an introduction to popular methods for measuring organizational effectiveness. This Work includes an extensive discussion of the important “culture-free/culture-bound debate” which has been succinctly summarized as follows: “[d]o countries at approximately the same stage of industrial development, and having similar industrial structures, adopt the same approach to the organization and management of their institutions? Or are their distinctive cultural heritages sufficiently entrenched to mean that each society fashions its own unique administrative philosophy?” The Work identifies and describes various typologies of organizational structures that have been suggested for use in making comparisons across national or culture borders. The Work also included the author’s other work on related topics including the purpose of organizations, organizational stakeholders, measurement of organizational performance and effectiveness, organizations and networks and organizational development and change.
... Front-end innovation (FEI) is the process of taking an idea, through a venture development path, which then transforms that idea into a viable project, which would then enable the firm to access credit for expansion. It is at the core of radical technological change and therefore central to long-run economic growth (Gama & Parida, 2017;Jovanovic, 1982;Kazanjian, 1988;Pereira et al., 2017;Romer, 1990). ...
... The experimental nature of FEI enables the risks and uncertainty associated with an invention/product, to be cleared, before entering the innovation phase. The innovation phase is a continuation of FEI, but with less risk and uncertainty, with access to credit, fully evolved organizational competencies and information, but on a much larger scale(Jovanovic, 1982;Kazanjian, 1988;Koen et al., 2014;Pereira et al., 2017). 4 Access to credit in this case is synonymous to access to resources(land, labor, capital, technology, entrepreneurship) required to scale (production) an enterprise. ...
We contribute to the literature on income inequality, by extending existing models to examine the effect of front-end innovation (FEI) on top income inequality. We use a fixed effect panel regression, on annual country-level data for twenty-four emerging markets, over twenty-four (1995–2018) years, and find an insignificant correlation between income inequality and FEI. The instrumental variable estimates, however, show a significant association between measures of FEI and top income shares. Furthermore, we confirm that FEI is weakly related to broad measures of income inequality. Our instrumentation strategy and robustness checks suggest that this correlation partly reflects a causality, from FEI to top income inequality. Finally, we reveal that FEI is necessary for the survival of new ventures, in the crucial early years. Overall, our findings confirm that that; a) sectors that scale slowly because institutions are a substantial barrier for FEI and, b) sectors that rely solely on the most skilled front-end innovators to access credit, significantly expand top entrepreneurial income share across emerging markets.
... Considera-se neste estudo que as EBT são empresas que realizam esforços tecnológicos significativos, que se destacam no desenvolvimento e na comercialização de novos produtos, processos e tecnologias (Kazanjian, 1988;Pinho et al., 2005) e que são, por natureza, geradoras e dependentes de inovação (Oliva, Sobral & Santos, 2005;Zayas & Carillo, 2012) ao aplicar conhecimento técnico científico (Simón, 2003;Zarzewska-Bielawska, 2012), e que devido à dinamicidade e turbulência do ambiente em que atuam, podem encontrar obstáculos macroeconômicos ao seu crescimento e à sua consolidação (De Almeida & Da Costa, 2018). ...
Objetivo do estudo: Investigou-se nesse estudo como as empresas de base tecnológica (EBT), visando adaptá-las às mudanças tecnológicas contínuas, desenvolvem a capacidade tecnológica (CT) a fim de gerar a inovação (I).Metodologia/abordagem: Realizou-se uma pesquisa qualitativa e exploratória, a partir de estudo de casos múltiplos, baseadas em observações diretas, análise de documentos e entrevistas semiestruturadas realizadas com os dirigentes das EBT. As entrevistas foram codificadas e analisadas utilizando o software Atlas.ti que contribuiu com a realização da técnica de análise de conteúdo.Originalidade/Relevância: Dado o ambiente de negócios caracterizado por mudanças tecnológicas contínuas, as EBT devem estimular sua CT e inovar continuamente para garantir sua sobrevivência.Principais resultados: Constatou-se que as cinco dimensões teóricas da I e os quatro componentes da CT se manifestaram nas EBT estudadas, além da consolidação do modelo teórico de pesquisa, integrando novo componente da CT: ‘capital cultural’.Contribuições teóricas/ metodológicas: Buscou-se evoluir com a literatura de capacidade tecnológica e inovação no contexto de EBT.Contribuições sociais / para a gestão: Espera-se que esta investigação possa auxiliar futuros empreendedores tecnológicos a identificarem quais componentes da CT e dimensões da I, auxiliam na gestão de EBT.
... products and technologies accelerates, as start-ups bring their offerings to the broader market [87,90], Finally, the exit stage involves retrieving accumulated value through public offerings, mergers, acquisitions [86]. Among these stages, securing initial capital is especially critical during the creation and transition stages, and founders must rapidly expand their skills and capabilities to support growth [91]. ...
In recent years, sustainability has gained much attention in the international environment, and introducing new products, processes, or practices for a sustainable future has become a key strategy for businesses. Start-ups have become a vital platform for introducing innovative businesses for sustainability, leading to a growing body of empirical research on sustainable start-ups. This study aims to identify the topics that have received major academic attention in sustainable start-ups and provides suggestions for possible directions for future research. For this purpose, we employed a bibliometric network analysis, identifying the trends and gaps in the existing stream of sustainable start-ups literature, suggesting future directions based on our findings. The existing literatures were focused on the following themes: entrepreneurship, business model and strategy, and United Nations Sustainable Development Goals (UN SDGs). Based on these findings, the study makes the following contributions. First, we reveal the lack of research methods and theories used to explain sustainable start-ups. Second, research on external actors, especially the importance of government support, has been overlooked. Third, the role of sustainable start-ups in the circular economy has been under-researched given its importance. Finally, we suggest that adopting a life-cycle perspective is essential for understanding the mechanisms by which start-ups achieve sustainable performance.
... The company's life cycle varies based on internal factors, including strategy, finance, and management capability, alongside external influences, which manifest in the strategic activities undertaken by the company (Dickinson, 2011;Bixia, 2007). The life cycle of a company has significant implications for management strategy, as each stage necessitates a suitable decision-making process (Kazanjian, 1988). The stages of the life cycle significantly influence financial statements, management practices, corporate governance, and the risk of bankruptcy (Ahmed et al., 2021). ...
... This insight gains significance when considering the influence of the FLC stages on management and business strategy. Furthermore, the FLC stages are crucial due to firms' evolving characteristics and resources at each stage, which necessitate appropriate adaptations of DT in organizational culture, leadership style, and decision-making processes (Kazanjian 1988). ...
Following the global economy’s shift toward a digital-based system, the significance of digital transformation (DT) at the firm level has become increasingly important. Accordingly, this study aims to enhance understanding of a firm’s DT by examining the varying impacts ofirm life cycle (FLC) stages on DT adoption. We consider the impact of the mass entrepreneur and innovation campaign (MEIC) on this relationship. Based on the data of China A-share non-financial companies listed on the Shanghai and Shenzhen stock exchanges from 2010 to 2020. The baseline findings reveal that firms in the growth stage are likelier to adopt DT than firms in the introduction and decline stages; however, DT adoption in the maturity stage is uncertain. MEIC encourages DT adoption during the introduction, maturity, and decline stages. Furthermore, the univariate test demonstrates a relative enhancement in DT after implementing MEIC, underscoring its role in effectively allocating resources within the firms to embrace DT. This study’s results are robust across various estimation techniques and instrumental variables. The empirical results offer insights into policy implications, highlighting the factors shaping firms’ DT adoption decisions at different FLC stages and endorsing resource-based and agency theories.
... However, social evaluations of new ventures are not stable over the life cycle of the venture because the venture itself (Kazanjian, 1988;Patzelt et al., 2021) and the social context for assessing that venture changes as the venture develops (Fisher et al., 2016). Investors make sense of the venture's existing and evolving stock of resources based on their intuition, perceptions, and expectations in the social context in which the venture operates (Fisher et al., 2017). ...
Product development in innovation-driven industries often fails. Although such failures cause new ventures to struggle to raise follow-on investments, some overcome this challenge. Why? Synthesizing insights from the research on signaling and social evaluation theory, we identify how certain resources can mitigate the risk of funding termination for new ventures despite product development failure. Through a longitudinal study of 254 venture capital-funded biotechnology ventures, we show that internal quality signals decrease in their effectiveness while industry endorsement signals increase in their effectiveness as quality signals over time. Our findings contribute to the literatures on entrepreneurial failure, entrepreneurial resource acquisition and signaling.
... La technologie, à son tour, conduit à la faillite d'une entreprise. L'utilisation d'une technologie dépassée peut entraîner des coûts de production très élevés et une offre inadaptée à la demande du marché, chose qui peut conduire à la dégradation de la performance de l'entreprise et par conséquent, on déclare la faillite (Kazanjian, 1988). Il est donc impératif que l'entreprise intègre efficacement les dernières technologies à ses ressources afin de rester compétitive sur le marché et favoriser sa pérennité et durabilité (Bradley & Cowdery, 2004). ...
De nombreuses recherches se sont penchées sur la défaillance des entreprises au Maroc, car ces dernières jouent un rôle crucial dans l'économie du pays. Elles sont indispensables à la création d'emplois et à la croissance économique. Selon une étude d'Inforisk menée en 2023, le nombre d'entreprises en défaillance a fortement augmenté au premier semestre 2023, atteignant environ 3830 entreprises, soit une augmentation de 28 % par rapport au même trimestre de 2022. Les très petites entreprises (TPE) sont les plus vulnérables à la faillite, avec un taux de 98,8 %, tandis que les petites et moyennes entreprises (PME) et les grandes entreprises affichent des taux de faillite très faibles, respectivement 1,1 % pour les PME et 0,1 % pour les grandes entreprises. Cet article vise à faire le point sur la défaillance des entreprises, en clarifiant ce concept, en exposant les différentes causes de la faillite d'entreprise, et en mettant en lumière les principales conséquences de la défaillance des entreprises. Pour cela, nous nous appuierons sur une démarche méthodologique reposant sur une analyse approfondie de la littérature existante afin de rassembler des informations pertinentes sur la défaillance des entreprises, nécessaires pour répondre à notre problématique. Les résultats de cette étude révèlent que la faillite d'une entreprise résulte de nombreux facteurs, à la fois internes et externes. Les causes internes incluent une gestion inefficace des ressources, une planification financière inadéquate, des problèmes de trésorerie ou un manque d'innovation. Quant aux causes externes, on retrouve l'instabilité économique, la concurrence féroce et les fluctuations des taux de change. Les conséquences de la défaillance sont multiples. Sur le plan économique, cela se traduit par d'importantes pertes d'emploi et une baisse de la confiance des investisseurs. Sur le plan social, la faillite a des répercussions néfastes sur l'état de santé physique et mentale des dirigeants. En conclusion, cette étude souligne l'importance de mettre en place un cadre préventif des défaillances, reposant sur une meilleure gouvernance, un accès plus souple au financement ainsi qu'une adaptation de politiques publiques solides afin de renforcer la résilience des entreprises marocaines face aux chocs économiques.
... Most notably, access to financial resources supports any new venture's opportunity exploitation (Gilbert et al., 2006;Soto-Simeone et al., 2020). Financial resources allow new ventures to make requisite investments, for example, to acquire the technologies or expertise needed (Kazanjian, 1988). However, CBEs may face problems in mobilizing sufficient financial resources. ...
This study investigates which local conditions enable community-based enterprises (CBEs) to create impact. Advancing our limited understanding of the various contexts that enable CBEs to tackle societal issues locally, we investigate supportive conditions across 77 CBEs driving the energy transition in their geographic community. Through qualitative comparative analysis, we identify four condition configurations for CBE impact creation. Across these configurations, we reveal transferable mechanisms helping CBEs to engage community members (Opportunity- and Community-anchoring) and handle the absence of a supportive condition (Circumventing and Compensating). Our study suggests how CBEs can combine these mechanisms to create impact in varied local contexts.
... Previous research has proposed process models but with no consensus on the number of development stages. For example, Churchill and Lewis (1983) and Greiner (1972), as well as Miller and Friesen (1984), identified five life cycle stages, while Kazanjian (1988) proposed four stages and Adizes (1979) suggested a model with up to ten stages. In addition to examining the post-establishment stages, the researchers have widened the focus by adding stages that consider the time before the actual company establishment, where the founders only start to move towards engagement in business start-up (Atherton 2007;Muhos et al. 2014;Saarela et al. 2015;Van de Ven et al. 1984). ...
The refugee communities add value to Western societies through entrepreneurship and new business development. According to the UN Refugee Agency (UNHCR), refugees are people who have fled away from war, violence, conflict or persecution. They have crossed an international border to find safety in another country. Despite historical refugee crises, the field of entrepreneurship is still in its infancy when it comes to understand how refugees engage in entrepreneurship, but interest in the field has increased since 2015 among both scholars and policymakers. The early stages of business are the most critical period for building a company in a new host country. However, little is known about the early processes of these businesses. The aim of this study is to clarify how early-stage refugee-owned businesses are managed, focusing on Finland-settled refugee entrepreneurs originating from the Greater Middle East conflict areas. The research gap can be condensed into the following research questions: (1) What are the special characteristics of business management in Finland as a host country from the perspective of refugee entrepreneurs? and (2) How is refugee embeddedness in the home country political and religious context reflected in their sensemaking of business in the host context? The data collection and analysis were conducted following the principles of the Critical Incident Technique (CIT). The findings clarify the management priorities in five refugee-owned businesses and shed light on how religious and political conflicts in the Greater Middle East are reflected in the early growth process in the Finnish business context. The results also reflect the refugee entrepreneur’s perspective regarding growth management theory. From a pragmatic perspective, the data provide a useful benchmarking object for refugee entrepreneurs and for development agencies, as well as for policymakers seeking to design better policies for refugee integration.
... In addition to this, Organisational life cycle theory (Smith et al., 1985) predicts sequences of phases in the life of an enterprise. Various models as stated by different authors explain the life/phase in a start-up that play an important role in its development like three-stage (Bhave,1994), Four stages (Kazanjian, 1988), Five stages (Galbraith, 1982), Ten stage-Milestone model (Block and MacMillan, 1985). ...
Conceptualization of an idea to a well framed model is emerging with need of generating wealth at national base. Entrepreneurship is the crucial base of an economy measuring the wealth base thereby contributing to national income. The need for evaluation of these start- ups with some criteria is a pressing priority. The rating criterion has risen these days as the expressional value for an individual assessment for a company or a firm. There is a need to widen the range for rating to full fledge rating model considering financials and non-financial aspects by opening its arms towards the most important segment of economy i.e. start-ups. In consideration of this, the need to launch a well specified rating agency for start-up is need of the hour. Since there is no particular study defining its focus towards such need on national and international level, we want to explore this area of research so as to contribute to existing literature (which is very limited). Considering India, although there is much effort by government to boost start-ups initiatives like Atma Nirbhar Bharat, Start-up India, Make in India and relaxations in budgets etc. but there is no criterion to evaluate these start-ups in order to gain visibility. In this research paper we made an effort to frame a rating model considering the important factors affecting the start-up which can satisfy the need for the model. The model is framed by us considering all financial factors like sources of funds, working capital, financial performance, idle funds etc. and non-financial factors like founder details, descriptive, market variable and future aspects etc. which are essential for a start-up to evaluate and henceforth benefits in longer run-in terms of getting easy funding, financial support and more visibility. An extant literature review is done in order to cover all parameters focusing the evaluation of start-ups with a longer perspective by adding to existing literature and helping policy makers, entrepreneurs, venture capitalists who can use the model to assess the start-ups and henceforth can benefit the economy.
... In any business, there are unique firm-level factors such as borrowing costs, and common industry-level factors such as input costs which are equally applicable to an industry or market. Researchers extensively study FLC from different perspectives, including prediction of organizational behaviour (Amin et al., 2023;Miller & Friesen, 1984), focus of various stakeholder groups (Mulchandani et al., 2023;Jawahar & McLaughlin, 2001), evaluating organizational effectiveness (Amin et al., 2023;Quinn & Cameron, 1983), innovation at different stages (Koberg et al., 1996), management priorities (Smith et al., 1985), international human resource management practices (Milliman et al., 1991), association between life cycle stages and firm traits (DeAngelo et al., 2006), capital structure (Talreja et al., 2023;Owen & Yansom, 2010), growth opportunity (Fama & French, 2001), issues faced by managers (Kazanjian, 1988), impact of macroeconomic parameters on firm performance (Ahmad & Nasrin, 2017), and profitability (Warusawitharana, 2012). Anthony and Ramesh (1992) conducted one of the initial studies on the subject, focused on variables such as capital expenditures, sales growth, and dividend payout, demonstrating the usefulness of the firm life cycle to market performance. ...
HMohammad, S. J., Aldaas, A. A., Al Jundi, N. A., & Alkhateeb, N. A. (2024). Firm life cycle, profitability and the impact of financial crisis: Evidence from developing market. Journal of Governance & Regulation, 13(2), 108–115. https://doi.org/10.22495/jgrv13i2art10ow to cite this paper: Mohammad, S.
... In most cases, firm newness hampers start-ups' abilities to thrive in their environments, given the time and continuous effort required to attain legitimacy, to be perceived as reliable, and to establish a verifiable history of serving the needs of stakeholders (Aldrich and Auster, 1986;Choi and Shepherd, 2005;Hannan and Freeman, 1984;Zimmerman and Zeitz, 2002). These disadvantages associated with newness can become particularly problematic as firms enter the commercialization stage of new venture growth (Kazanjian, 1988). Stinchcombe (1965) identified four conditions that affect the degree to which a new venture will face LoN issues (see Table 9.1). ...
... A firm life cycle is made up of the life cycles of the products and services it provides, but because various product offerings may be at different life cycle stages, drawing and capturing the firm life cycle can be difficult. Each stage of a firm life cycle has its own set of traits and demands, which require specialized organizational structures, staff, leadership styles, and decision-making processes (Kazanjian, 1988). The firm life cycle describes the progression of a business through the various stages that it goes through. ...
This study aims to determine whether the asset turnover ratio, current ratio, debt ratio and return on net worth influences profitability at each firm life cycle stages in manufacturing companies on the Indonesia Stock Exchange. The study only focuses on introduction stage and growth stage. The classification at each stage of the firm life stages uses the sales growth variable to categorize it. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange for the 2016-2020 period. The sampling technique in this study used purposive sampling technique and obtained a sample of 36 companies. The data analysis method used is panel data multiple regression analysis. The results indicate that at introduction stage only debt ratio and return on net worth that found has a significance influences on profitability. At growth stage almost all independent variable has a significance influences on profitability, except current ratio variable.
... Conventional corporate life-cycle models suggest that corporations progress from birth to decline, and that their strategies, structures and activities change according their progress (Gray & Ariss, 1985;Miller & Friesen, 1980, 1984Quinn & Cameron, 1983). Each stage in the organizational life cycle has unique characteristics and corresponding organizational, personnel, leadership, and decision-making structures to meet the demands (Kazanjian, 1988). ...
This paper showcases an organizational life-cycle analysis of corporate offending behavior in small businesses. It analyzes two small food and hospitality firms in China, drawing on deep ethnographic data collected during three years of fieldwork. The paper investigates these two businesses as they go through three phases: pre-existence, existence, and survival. The study shows that organizational life-course analysis is important for understanding the development and root causes of organizational offending. It finds that offending evolves alongside the development of the organization. It shows that an organizational life-cycle analysis should focus not just on changes in the corporation itself, but also on how the regulatory context changes over the course of the organization’s development and maturing. Stages in the business cycle coincide with changes in regulatory encounters, and this shapes how corporations view what regulators expect of them and the extent to which they can violate such expectations. This points to a broader form of life-course analysis. It urges the field to moves beyond an analysis of changes in the business to also study the how such changes coincide with changes in the regulatory frameworks that are supposed to monitor and reduce offending.
... These two variables were log-transformed to correct for skewness. As firms face a variety of operational challenges through the stages of the life cycle (Kazanjian, 1988), bricolage strategy and performance might differ. Growth stages featured start-up, growth and maturity were controlled and dummy coded. ...
Purpose
Growing attention has been paid to bricolage as a strategic means to overcome resource constraints in small and medium-sized enterprises (SMEs). In the industrial market, a bricolage strategy and ambidextrous action may help firms to remain competitive by responding quickly to the business-to-business marketing. Despite its paramount importance, questions as to how bricolage is strengthened and how bricolage improves innovation ambidexterity have remained unanswered. This study aims to develop an integrated model for the relationships among environmental turbulence, learning orientation, ambidexterity and performance, with a particular focus on the mediation of bricolage.
Design/methodology/approach
Building on the literature review regarding the key constructs, hypotheses were developed. Data were collected using questionnaires from 229 SMEs in South Korea. To test hypothesis, structural equation modeling and Monte Carlo method for assessing mediation were performed.
Findings
Results reveal that environmental turbulence and learning orientation are positively associated with bricolage, which sequentially affects ambidextrous action as a driver of performance. The findings also indicate that bricolage significantly mediates the relationship between its antecedents and ambidexterity.
Originality/value
This research contributes to advancing our understanding of the role of a bricolage strategy for innovation ambidexterity and performance in SMEs. This study is the first to examine the mediation of bricolage between environmental factors and ambidexterity for improved performance.
... First, the conceptualization stage describes how new ventures act under uncertainty regarding the plausibility of their underlying technology and the targeted market segment. Second, the commercialization stage demonstrates how the new ventures decrease technological and market-based uncertainties and establish a plausible business model (Kazanjian, 1988). Third, the growth stage indicates how the new venture exploits its technology to harvest short-term financial returns (Rajgopal et al., 2003). ...
The increasing importance of digital platforms on creating and consuming value is undisputed. Digital platforms integrate and orchestrate an ecosystem of autonomous actors to co-create value instead of relying solely on internal innovation capabilities. The platform owner provides digital affordances through boundary resources that an ecosystem of complementors can use to create value-adding services. Based on those boundary resources, the platform combines internal innovation capabilities by providing digital affordances and utilizes external innovation capabilities between complementors that refer to the generativity of the ecosystem. However, it remains unclear how the provision of affordances and the interaction of complementors led to the tremendous success of digital platforms. To disentangle both internal and external innovation capabilities, we adhere to a fuzzy-set qualitative comparative analysis based on 47 platforms. Preliminary results reveal four configurations of leading platforms that combine affordances of the platform and generativity in an ecosystem to point toward a fruitful area for future research.
... Alternatively, (iv) customer/client portfolioincreasing client satisfaction and gaining customer trust [10]. Shreds of evidence on the matter have shown that sustainable business growth occurs in different stages measured by life-cycle periods or the firm's age (FA) [11]. The stages are : (1) commercialization related to business start-up, (2) growth, and (3) maturity. ...
This research paper explores the firms' growths analysis through Artificial Neural Networks, explicitly using the Multilayer Perceptron (MLP) Analysis in a panel of construction businesses operating in the country. The construction businesses data used are classified into Organizational characteristics (5 patterns) and Financial indicators (18 patterns). They refer to Liquidity (5), Operational Efficiency (4), Leverage (4), and Growth (5) patterns. Thus, 85 construction business data from 2020-2021 have been collected, but only 31 businesses are considered valid for Multilayer Perceptron analysis training purposes. The first research step before building the multilayer perceptron neural network is the implementation of the Receiver Operating Characteristics (ROC curve) Analysis at a 95% confidence level, considering as a dependent variable the firms' age [in start-up (0); growth (1) and those in the maturity phase (2)]. Then, based on ROC analysis results, a multilayer perceptron network with 10 input layers patterns, 10 customers' patterns factors, and one covariate is implemented. The number of hidden layers is 1, and the number of units in hidden layers is 20. The activation function used is Hyperbolic tangent. Thus, the empirical findings of the research provide construction businesses and line ministries with valuable insights on boosting their growth.
... Moreover, a shorter time period of reaching critical milestones acts as a form of competitive advantage for nascent ventures (Stalk, 1988;Stalk Jr and Hout, 1990). In this regard, several multi-stage venture creation frameworks stress the importance of two particular milestones (Bhave, 1994;Gaimon and Bailey, 2013;Kazanjian, 1988;Reynolds and Miller, 1992): namely (1) the completion of the venture's new product and (2) the product's market launch, which leads to generating sustainable profits. ...
... Van de Ven and Poole (1995) emphasize process theory to conceptualize how activities and events affect phenomena causing constructs to emerge, evolve, or terminate over time (Cloutier & Langley, 2020;Langley, 1999). Like technology-based organizations (Kazanjian, 1988), DPEs undergo stages of creation, growth, persistence, and decline (McIntyre & Srinivasan, 2017;van de Ven & Poole, 1995). As these stages may vary in time and space, largely depending on complexity, size, or reach of the respective DPE, a mechanistic process approach would fall short of considering relevant implications. ...
Digital Platform Ecosystems (DPEs) represent a distinct form of interorganizational relationship cultivated on digital infrastructures. Although DPEs are researched extensively among management scholars, shortcomings in formalizing their emergence remain. Particularly re-occurring patterns and temporal dimensions of emergence continue to be relatively unexplored. We review existing literature in an integrative manner and shed light on DPE emergence by deriving a framework comprising four distinct stages. We thereby sharpen the understanding of DPEs and bring convergence to an increasingly fragmented field of research by accounting for industrial innovation management, organizational, market-based, and ecosystem-based views. As a result, we present a classification of DPE emergence stages and related key activities contributing to the progression from a nascent digital platform into a wide-spanning DPE. Finally, we propose multiple avenues for future research.
... On the other side, rapid growth leads to problems that diminish a firm's ability to generate profits (Gartner, 1997). High growth might create numerous challenges (Churchill & Lewis, 1983;Greiner, 1972;Kazanjian, 1988;Shuman & Seeger, 1986) and internal obstacles to the standard operating procedures or failure (Hambrick & Crozier, 1985). A rapid growth in the number of employees hinders knowledge transfer, might alter a company's internal structure, and modify its original entrepreneurial culture. ...
The study investigates the firm high growth phenomenon and its relationships with reorganization costs and external financial dependence. We use a sample of medium-sized Italian fast-growing firms. Fast-growth firms are structured enough to plan growth strategies and not depend on occasional external events. The paper provides insight into the lumpiness of the process of firm expansion accompanying its reorganization, conditional on the presence or not of a fast-growth event. Moreover, the analysis shed some light on the relationship between growth and performance and on the growth process of a subsample of young, fast-growing firms to check the presence of differences in the process or the strategy of growth. We find a positive and significant relation between present growth and proxy variables for resources organization, a lumpy growth process, and a positive association of growth and profit for almost the whole sample, i.e., a positive balance between costs and benefit of growth.
... Organizational life cycle theory conceptualizes a staged life cycle, where organizations evolve predictably to achieve organizational growth (Chandler, 1962;Kazanjian & Drazin, 1989). Kazanjian's (1988) seminal work considers established organizations and distinguishes four life cycle stages: conception and development, commercialization, growth, and stability. Due to the focus on technology, VC-backed startups, this paper excludes the last stage of stability (Fisher et al., 2016). ...
This dissertation examines entrepreneurial resource mobilization of cleantech startups related to political ideology and product digitization. It comprises three studies: (1) a quantitative analysis of the effect of VC investors’ political ideology on investment decision-making, (2) a quantitative analysis of the effect of startups’ product digitization on venture growth, and (3) a qualitative examination of entrepreneurial resource mobilization of non-digital, hybrid, and digital startups.
... There are several life cycles models, however, we believe that the differences between the models are more semantic then substantial in nature. We rely on Kazanjian's (1988) conceptualization of the life cycle stages for our argument, where the initial stage of the model relates to emergent/nascent entrepreneurship, establishment/survival, growth, and prosperity. In the first stage, the emergent/nascent stage, the new venture is not conceptualized as an independent venture but as nurtured by the incubator. ...
Kerala grapples with significant challenges, most notably unemployment. As many confront joblessness, the state believes entrepreneurship can be a solution. The Covid-19 crisis exacerbated the issue when expatriates returned in large numbers, amplifying the economic strain. These returnees, now also job-seeking, intensify the state's socio-economic distress. This paper focuses on capacity building and sustainable development for these expatriate entrepreneurs. It explores the importance of capacity building for expatriates in the context of Kerala's entrepreneurship initiatives. While capacity building does improve expatriates' abilities, it falls short in addressing some crucial aspects for effectiveness. The study reveals that expatriate entrepreneurs encounter challenges similar to local Kerala entrepreneurs, but are uniquely impacted by certain governmental and social factors. Kerala's government needs to introduce returnee-centric projects and schemes. However, the study indicates that their execution and effectiveness leave much to be desired.
Tento článek představuje případovou studii, jejímž cílem je pochopit a vysvětlit souvislosti a příčiny růstu a pádu konkrétního start-upu během jeho životního cyklu. Jsou diskutovány teoretické základy růstu start-upů, teorie životního cyklu podniku a jeho širší souvislosti a také nejčastější příčiny jejich růstu a neúspěchu. Případ společnosti Zoot, internetového obchodu s módou, je sledován pomocí několika analytických nástrojů, jako je finanční analýza, kvantitativní obsahová analýza a SWOT analýza. Analyzovaný start-up zpočátku rychle rostl, především díky kvalitním zákaznickým službám, ale tento obchodní model nebyl ziskový a společnost se zadlužila. Start-upu v prvních letech k růstu pomohl i rozvíjející se trh, v poslední době však na trh přicházejí silní konkurenti. Na základě provedených analýz je posouzen a diskutován současný stav společnosti ve světle existujících teoretických modelů a empirických poznatků. Článek slouží jako případová studie, kterou lze široce využít jako studijní materiál pro předměty jako Základy podnikání, Rozvoj podniku, Finanční management nebo Podniková ekonomika.
Purpose
Small and medium-sized enterprises (SMEs) are critical in the global business environment, yet they face significant challenges of survival. This study aims to investigate the role of continuous learning and resilience dynamic capabilities (RDC) on SME performance.
Design/methodology/approach
The authors conducted a quantitative survey of leaders from 290 SMEs to examine the relationship between continuous learning and performance. Structural equation modeling (SEM) is used to test the dependent relationships in this study. In addition, the Monte Carlo Method is used to test the mediating effect of RDC.
Findings
The results suggest that there is a direct effect of continuous learning on firm performance, as well as an indirect effect through RDC. In other words, the effect of continuous learning on firm performance was partially mediated through RDC.
Originality/value
The authors also explored whether firm life cycle stage matters regarding the role of continuous learning and RDC in SMEs. The mediating role of RDC becomes more pronounced (fully mediated) as SMEs transition from the growth stage to maturity stage of their life cycle.
Purpose
This paper aims to explore the perception of successful entrepreneurs and resource providers regarding the minimum operational time necessary to legitimize an enterprise as an established company, as well as the tactics used by the entrepreneurs to minimize the distrust of society during this initial period of the life cycle of the organization.
Design/methodology/approach
Data collection from two groups: (i) interviews with 62 entrepreneurs and founders of established companies; and (ii) a questionnaire completed by 77 sales managers of companies that provide businesses with resources (they practice business-to-business). Regarding analyses: (i) to analyze information, this study applied the content analysis technique; and (ii) for data, this study applied the one-sample t -test, mean comparison t -test, Pearson’s correlation test, chi-square test of association, Mann–Whitney U test and correspondence analysis technique.
Findings
In this study, a period of 42 months was identified for the legitimization of enterprises by society, in other words, the time necessary for enterprises to be recognized as an established company and a company of low risk by customers and resource providers. A set of managerial and behavioral actions practiced by successful entrepreneurs to face the difficulties they experience during the legitimization period was also identified.
Practical implications
In addition to establishing a period of 42 months for the legitimization of an enterprise in the eyes of society, a set of 15 strategies used by successful entrepreneurs was identified to combat the prejudice associated with the youthfulness of their companies. Of these, 12 are linked to managerial actions and 3 to the entrepreneur’s behavior. It should be highlighted that eight of these strategies are innovative and have yet to be addressed in the literature on mitigating risks associated with the liability of newness principle.
Originality/value
The authors discuss the legitimization of enterprises based on the perception of actors who play a fundamental role regarding entrepreneurial action: resource providers for companies, customers and successful entrepreneurs. This is a triangulation of sources, as well as a triangulation of collected data and qualitative and quantitative techniques, which sought to ensure the accuracy and reliability of the information that resulted from this analytical process.
A village-owned enterprise (VOE) is the embodiment of the productive economic management of a village. VOE operates in a cooperative, participatory, emancipatory, transparent, accountable, and sustainable manner. Furthermore, VOE aims to improve the village economy. Badan Usaha Milik Desa (BUMDES) is the embociment of VOE in Indonesia. BUMDES manages rural area development and village community empowerment. Furthermore, BUMDES solves existing problems in the village using a business approach. In addition to being profit-oriented, BUMDES has a social mission. This research aims to describe BUMDES typology based on business and social orientation and determine the existing problem in each typology using the value chain approach. This research uses a qualitative model. The findings reveal that five BUMDES in Malang Regency have a social role and contribute to the community as a social enterprise. In addition, nine BUMDES remainedfocusing on the economy and profit. The analysis of the BUMDES life cycle shows that BUMDES faced challenges in the initial establishment stage. The problems were related to local leadership, equity capital, and management competence. KEY WORDS Village-owned enterprise, mapping the potential, Badan Usaha Milik Desa.
O agronegócio é um dos maiores setores econômicos do mundo, desempenhando um papel crucial na economia brasileira, representando quase um quarto do PIB em 2022. No entanto, seu crescimento trouxe desafios, como o impacto ambiental e as mudanças climáticas, exigindo práticas sustentáveis. A pesquisa foi conduzida por meio de uma análise bibliográfica de natureza qualitativa, descritiva e exploratória, utilizando artigos de periódicos nacionais indexados à plataforma da CAPES e no Google Scholar. E teve como objetivo, compreender a importância do mercado de crédito de carbono como uma ferramenta para mitigar as emissões de gases do efeito estufa no setor agrícola brasileiro, além de identificar lacunas no conhecimento científico sobre o tema. Os resultados destacaram a relevância do mercado de crédito de carbono, mas também evidenciaram a limitada adoção dessa prática no Brasil, bem como uma lacuna significativa no conhecimento científico sobre o assunto. Em suma, pôde ser observado que o agronegócio brasileiro enfrenta desafios ambientais e climáticos, requerendo práticas sustentáveis, como o mercado de crédito de carbono, para garantir seu crescimento econômico de forma sustentável. Isso demanda um esforço conjunto do governo, das empresas e da sociedade civil para promover o desenvolvimento sustentável do setor.
This study examines the impact of entrepreneur attributes on financing channels of small and medium‐sized enterprises (SMEs) as well as the moderating role of firm age on this relationship. It examines a comprehensive dataset of 4139 firm‐year observations operating in the Middle East and North Africa (MENA) region observed over the 2013–2019 period. The results are four‐fold. First, our overall findings reveal that experienced entrepreneurs tend to use internal funds. Second, the university education of entrepreneurs positively correlates with debt financing. Third, female entrepreneurs are more eager to use internal funds and less debt. Fourth, firm age is found to moderate these relationships. Indeed, in young SMEs, experienced entrepreneurs are shown to rely on debt, graduated entrepreneurs on internal funds, and in older SMEs, female entrepreneurs use debt. Our results bear on the proposals of upper echelons and organizational lifecycle theories.
Реалізація діяльності сучасної організації, окрім сукупності необхідних індивідуальних знань, пізнавальних та практичних умінь, навичок працівників для правильного виконання завдань та досягнення мети, потребує раціональної організаційної структури, ефективних внутрішніх та зовнішніх комунікацій, інформаційних баз даних, організаційних технологій прийняття управлінських рішень. Це формує компетентність організації, може стати джерелом її конкурентоспроможності та унікальності у порівнянні із конкурентами. Метою статті є визначення сутності поняття «структура компетентності» та обґрунтування необхідності її трансформації за стадіями життєвого циклу організації. Для досягнення мети використовувались методи морфологічного аналізу, наукової індукції та дедукції; діалектичного методу; системного аналізу та синтезу; контент-аналізу, логічного аналізу й теоретичного узагальнення. Практична цінність статті полягає в уточненні поняття «структура компетентності» та обґрунтуванні необхідності її трансформації з урахуванням актуальної позиції організації на кривій її життєвого циклу.
This study examines the effect of small and medium-sized enterprises (SMEs)’ open innovation activities on performance, depending on the growth stage. It also studies the mediating effect of government subsidies on SMEs’ innovation performance. We collected data from 452 SMEs in the information technology (IT) industry located in Korea’s innovation clusters. The findings show that SMEs’ absorptive capacity and external network activities positively influence their performance, with stronger effects for SMEs in their mature growth stage. Moreover, a higher ratio of government subsidies in R&D investment positively mediates the relationship between external network activities and innovation performance. This study presents several implications for policymakers to support SMEs’ R&D activities using government subsidies.
Innovative Technologien, wie Künstliche Intelligenz oder „digital humans“, finden rasant Einzug in die Markenkommunikation. Immer mehr Unternehmen setzen auf den Einsatz virtueller Assistenten als Verkaufshelfer im Online-Handel oder zur Unterstützung bei der Beantwortung von Kundenfragen. Das neueste Phänomen in diesem Zusammenhang sind sogenannte virtuelle Models, die gerade als mittels Software erstellte und, mit fiktiven Persönlichkeiten ausgestattete Figuren die Werbewelt erobern. Virtuelle Models können perfekt an die Bedürfnisse einer Marke angepasst und flexibel für Marketingaktivitäten eingesetzt werden. Dabei birgt der Einsatz jedoch auch Risiken, beispielsweise, wenn es um die Authentizität oder die Glaubwürdigkeit der Werbebotschaften virtueller Models geht. Wie virtuelle Models gestaltet sein sollten, um positive Reaktionen auszulösen, ist noch kaum untersucht. Im folgenden Artikel soll zunächst ein Überblick über den Einfluss innovativer Technologien gegeben werden. Danach folgt die Aufbereitung der Literatur zu Konsumentenreaktionen auf verschiedene virtuelle Charaktere und anschließend die Vorstellung einer empirischen Studie des Instituts für Konsum- und Verhaltensforschung in Saarbrücken zur optimalen kontextspezifischen Darstellung virtueller Models.
This paper proposes that organizational science could be applied more widely if the field were more concerned with the conditions under which research findings are valid. Papers in the field generalize about organizations as if they were all alike, or refrain from generalizing at all, as if they were all unique. The population perspective presented de-emphasizes the all-alike and all-unique approaches, placing emphasis instead on research methods that improve the description and classification of organizational forms, define more homogeneous groupings, and specify the limited conditions under which predictions may be expected to hold true. The principles of the population perspective are reviewed, and an outline is presented for developing a classification of organizational forms. Suggestions are then made on how to use the perspective to increase and improve the application of organizational research.
Considers structural inertia in organizational populations as an outcome of an ecological-evolutionary process. Structural inertia is considered to be a consequence of selection as opposed to a precondition. The focus of this analysis is on the timing of organizational change. Structural inertia is defined to be a correspondence between a class of organizations and their environments. Reliably producing collective action and accounting rationally for their activities are identified as important organizational competencies. This reliability and accountability are achieved when the organization has the capacity to reproduce structure with high fidelity. Organizations are composed of various hierarchical layers that vary in their ability to respond and change. Organizational goals, forms of authority, core technology, and marketing strategy are the four organizational properties used to classify organizations in the proposed theory. Older organizations are found to have more inertia than younger ones. The effect of size on inertia is more difficult to determine. The variance in inertia with respect to the complexity of organizational arrangements is also explored. (SRD)
This paper focuses on patterns of technological change and on the impact of technological breakthroughs on environmental conditions. Using data from the minicomputer, cement, and airline industries from their births through 1980, we demonstrate that technology evolves through periods of incremental change punctuated by technological break-throughs that either enhance or destroy the competence of firms in an industry. These breakthroughs, or technological discontinuities, significantly increase both environmental uncertainty and munificence. The study shows that while competence-destroying discontinuities are initiated by new firms and are associated with increased environmental turbulence, competence-enhancing discontinuities are initiated by existing firms and are associated with decreased environmental turbulence. These effects decrease over successive discontinuities. Those firms that initiate major technological changes grow more rapidly than other firms.
This paper discusses the relationships between stage of development in organizational life cycles and organizational effectiveness. We begin the paper by reviewing nine models of organizational life cycles that have been proposed in the literature. Each of these models identifies certain characteristics that typify organizations in different stages of development. A summary model of life cycle stages is derived that integrates each of these nine models.
Next, a framework of organizational effectiveness developed by Quinn and Rohrbaugh is introduced. This framework organizes criteria of effectiveness into four models—rational goal, open systems, human relations, and internal processes models. We hypothesize that certain of the models are important in evaluating the effectiveness of organizations in particular life cycle stages but not in others. The analysis of a state agency's development over five years provides some evidence to support these hypothesized relationships between life cycle stages and criteria of effectiveness.
We conclude that major criteria of effectiveness change in predictable ways as organizations develop through their life cycles. Some shifts in state of development are resisted by the organization much more than are others, and intervention into organizations may be needed to help make the transitions less painful and costly. We also discuss why the predictions of contingency theory often are not substantiated by research because the responses of organizations to the external environment vary in different life cycle stages.
Presents a framework that highlights the differences among entrepreneurs and among their ventures. Building on the work of others, four dimensions are identified for this framework describing new venture creation. These are: individuals, environment, organization, and process. This is the first framework to combine all four of these dimensions. The individual dimension should consider not only the psychological characteristics of the entrepreneur such as need for achievement and locus of control, but must also consider the entrepreneur's background, experience, and attitudes. The process dimension should be viewed in light of six different behaviors including the location of a business opportunity and the accumulation of resources. Twelve factors are identified for the environmental dimension. These twelve factors were chosen based on the review of 17 research papers focused on environmental variables which affect new venture creation. The organization dimension is composed of three generic competitive advantage strategies and 14 competitive entry wedges. This framework allows for the examination and comparison of very different new ventures. Conflicting results in prior research studies may be explained by considering the dimensions used in that work. (SRD)
The startups of 14 educational-software companies are investigated from three different perspectives: entrepreneurial, organizational, and ecological. The performance and stages of development of the new firms are viewed from each perspective. The entrepreneurial perspective concentrates on the characteristics and background of the founding individual. The organizational perspective looks at the planning and initial development processes of the firms. The ecological perspective uses the population of firms as a level of analysis and is concerned with the success of the industry as a whole. These three perspectives each contribute significantly to the designing of startups of new organizations.
This article suggests a return to taxonomies of organizations for developing theories of the middle range, instead of searching for a single, general set of theories of organizations. Limitations of previous taxonomies and typologies are reviewed, and a new strategy for subgrouping which employs (1) multiple parameters, (2) measures of dispersion, and (3) measures of change and process is proposed. A hypothetical example of how theorizing might follow the use of this strategy is provided. The proposed strategy is discussed in the context of earlier writings on the topic of taxonomizing in general and the taxonomizing of organizations in particular. It is argued that a major hurdle for future taxonomic work in organization theory is the identification of some core dimension, or set of dimensions of organizations, which can be used in a process of speciation parallel to that used in biological systematics. The multidimensional "Characteristic Adaptation Style" of organizations is forwarded as one such possible criterion.
Certain assumptions about the temporal patterns of consumer adoption and repeat buying behavior are derived from the literature. By means of a simulation model the impact of these assumptions on the shape of the product life cycle is assessed. Conclusions are derived in the form of propositions for future research.
In the past few years, a number of firms have moved into venture capital investing and growing their own internal ventures. These efforts have met with mixed results. One of the reasons for failure is the difficulty of growing a new organization from scratch. These start-up ventures must pass through a number of stages in building this new organization. Problems are encountered because managers do not think stagewise. In working with these managers, a model was developed to describe the stages through which high-technology ventures will progress. These stages can be used in guiding organizing decisions for each stage.
The idea of assigning corporate managers on the basis of the product life cycle is rapidly gaining currency. The practice is likely to work better in some corporations than others. While the PLC assignment method may work in homogeneous companies, the author contends that all organizations may be better off trying the alternative approach he suggests.
In this article a model for identifying organizational styles is presented. Such a typology has been found to be repetitive as a pattern in a significant number or organizations and it has been verified by hundreds of executives as reflecting their experience.The model enables an organization to foresee the problems it will face as it grows over time. Furthermore, it provides tools for prescribing effective organizational treatments-organizational therapy and surgery. It is a contingency model in that it presents a framework for prescribing the treatments most likely to be effective depending on the lifecycle stage of the organization.
Examines how major firms utilize R&D activities to create new businesses through internal corporate venturing (ICV). Using a qualitative method, this analysis was done for one large, U.S.-based high-technology firm. This firm has a new venture division, which was formed in the early 1970s. Data were obtained from the study of six major projects that were ongoing at the time of the research. This data collection included interviews with 61 firm employees involved in the projects. The key and peripheral managerial activities of the grounded process model of ICV and the flow of these activities through four venture stages are presented. The four major processes in the model are definition, impetus, strategic context determination, and structural context determination. Among the findings: It is usually the autonomous strategic initiatives of individuals at the operational level that provide the ideas for much of corporate entrepreneurship. As a result of the very autonomous nature of these initiatives, management has difficulty deciding how to deal with the new initiatives and often ignores administrative issues through the entrepreneurial process. Middle-level managers are found to play a key role in linking these autonomous initiatives to the corporate strategy of these diversified major firms. (SRD)
Approaches that suffer from specification error and unwarranted generalizations are predominant among students of organizational adaptation and have resulted in fragmented and conflicting findings. The simplistic assumptions about organizations implicit in these approaches constrain the predictive power of findings and often prevent insights. It is argued that there exist complex Gestalts among environmental, organizational, and strategy-making variables, and that these Gestalts are relatively few and very different from one another both in terms of the scores of, and relationships among, variables. The Gestalts are expected to allow a richer, more complex, and multifaceted characterization of the process by which organizations adapt and change. They may also constitute enough structure in the data to yield more predictive findings. Some methodological approaches for identifying Gestalts are discussed [1].
This paper develops a research design for examining the relative influence of managers and environments on organizational activity over time. We outline three basic models of organization evolution: (1) an inertial model, which emphasizes constraints on evolution imposed by early patterns of exchange; (2) an external control model, which posits change in organizational activities that is guided by changes in environmental conditions over time; and (3) a strategic management model, which emphasizes the role of senior executives in choosing patterns and domains of competitive activity.
Using the general logic of experimental design, we outline methods for comparing longitudinal patterns in change and persistence that will distinguish between these alternative perspectives. Specifically, we describe procedures for operationalizing two basic parameters of research design: (1) the organization population cohort, which imposes systematic restrictions on sampling; and (2) a generalized version of the product class life cycle, which helps isolate changes in environmental conditions for comparing organizational activity patterns over time. Data from an ongoing study of firms in the minicomputer product class are presented to illustrate these concepts.
A review of recent literature on the corporate life cycle disclosed five common stages: birth, growth, maturity, revival, and decline. Theorists predicted that each stage would manifest integral complementarities among variables of environment ("situation"), strategy, structure and decision making methods; that organizational growth and increasing environmental complexity would cause each stage to exhibit certain significant differences from all other stages along these four classes of variables; and that organizations tend to move in a linear progression through the five stages, proceeding sequentially from birth to decline. These contentions were tested by this study. A sample of 161 periods of history from 36 firms were classified into the five life cycle stages using a few attributes deemed central to each. Analyses of variance were performed on 54 variables of strategy, structure, environment and decision making style. The results seemed to support the prevalence of complementarities among variables within each stage and the predicted inter-stage differences. They did not, however, show that organizations went through the stages in the same sequence.
Kimberly presents a case study of the birth and early development of an innovative medical school. When the school opened in 1971, the existing 86 medical schools all offered similar programs: two years of basic science training in lecture halls and laboratories, followed by two years of direct contact with patients in clinical settings. In the new school, students were taught didactically only during the first year. During the second year, each student was assigned to a community physician who acted as an advisor and who discussed with students those patients afflicted with the diseases the student was currently studying. Available evidence indicated that the school's innovative curriculum was favorably received by the students and that they performed as well as their peers on standardized year-end exams. The author found the case of this medical school to be of particular interest from an organizational viewpoint in that: (1) the early development of the school was shaped by the first dean's entrepreneurial activity, ambitions, visions, strengths, and weaknesses; (2) the uncertainty resulting from the school's novelty forced individuals to assume new roles and face unclear performance criteria; and (3) the transition of an innovative school to an institutionalized one was problematic because it modified the decision-making process. The author suggests that those things which lead to an organization's success during its early years are not the same as those that lead to longer-run success. He says that a new organization creates new norms, values, and procedures whereas the elements of an existing organization interact within an established culture. He concludes that organizational birth is a phenomenon about which relatively little is known, but which may be an important constraint on later development. A comparative analysis of the birth, life, and death of organization is advocated.
- Hambrick D. C.
- Gupta A.
- Snow C. C.