Organizational Life Cycle and Innovation Among Entrepreneurial Enterprises
AbstractOrganizational life cycle has been studied for several decades by management researchers. Most efforts, however, have focused on relationships between a specific life cycle stage and another construct, such as organizational effectiveness, management priorities, organizational behavior, or competitive strategy. This study categorizes 107 organizations located in six contiguous counties in the southeastern United States into life cycle stages. Respondents were also asked to identify the importance of innovation and change in their industries, their perceived satisfaction with performance, and their perceived level of threats from the environment. Support was found for four of the five proposed life cycle stages, with none of the respondents indicating that their organizations were in the decline stage. Firms in Stage 1 (existence) and Stage 4 (renewal) reported high scores for innovation and change in their industries and a high level of satisfaction with performance. Stage 1 firms also reported the highest amount of perceived threat from the environment, in contrast to firms in Stage 3 (success) who reported the lowest.
Adizes, I. (1979). Organizational passages: Diagnosing and treating life cycle problems in organizations. Organizational Dynamics, 8(1), 3-24.
Bedeian, A. (1990). Choice and determinism: A comment. Strategic Management Journal, 11(7), 571-573.
Bourgeois, L. (1984). Strategic management and determinism. Academy of Management Review, 9(4), 586-596.
Chandler, A. (1962). Strategy and Structure. Cambridge, MA: MIT Press.
Churchill, N., & Lewis, V. (1983). The five stages of small business growth. Harvard Business Review, 61(3), 30-50.
Dess,, G., & Beard, D. (1984). Dimensions of organizational task environments. Administrative Science Quarterly, 29(March), 52-73.
Daft, R., & Weick, K. (1984). Toward a model of organizations as interpretation systems. Academy of Management Review, 9(2), 284-295.
Dodge, H., Fullerton, S., & Robbins, J. (1994). Stage of organizational life cycle and competition as mediators of problem perception for small businesses. Strategic Management Journal, 15, 121-134.
Dodge, H., & Robbins, J. (1992). An empirical examination of the organizational life cycle model for small business development and survival. Journal of Small Business Management, 30(1), 27-37.
Downs, A. (1967). The life cycle of bureaus. In Downs, A., Inside Bureaucracy. San Francisco, CA: Little, Brown, & Co. and Rand Corporation.
Drazin, R., & Kazanjian, R. (1990). Research notes and communications: A reanalysis of Miller and Friesen's life cycle data. Strategic Management Journal, 11(4), 319-325.
Emery, F., & Trsit, E. (1965). The causal texture of organizational environments. Human Relations, 18, 21-32.
Greiner, L. (1972). Evolution and revolution as organizations grow. Harvard Business Review, 50(4), 37-46.
Hanks, S. (1990). An Empirical Examination of The Organizational Life Cycle in High Technology Firms. Doctoral Dissertation, University of Utah.
Hrebiniak, L., & Joyce, W. (1985). Organizational adaptation: Strategic choice and environmental determination. Administrative Science Quarterly, 30, 336-349.
Hurst, D., Rush, J., & White, R. (1989). Top management teams and organizational renewal. Strategic Management Journal, 10, 87-105.
Jawahar, I., & McLaughlin, G. (2001). Toward a descriptive stakeholder theory: An organizational life cycle approach. Academy of Management Review, 26(3), 397-414.
Kazanjian, R. (1988). Relation of dominant problems to stages of growth in technology-based ventures. Academy of Management Journal, 31(2), 257-279.
Khandwalla, P.N. (1977). The Design of Organizations. New York: Harcourt Brace Jovanovich.
Kimberly, J., & Miles, R. (1980). The Organizational Life Cycle. San Francisco, CA: Jossey-Bass Publishers.
Lester, D. (2004). Organizational life cycle and strategy: Must they match? International Journal of Management and Decision Making, 5(2/3), 135-143.
Lester, D., & Parnell, J. (1999). A strategic interpretation of organization life cycle. Journal of Applied Management and Entrepreneurship, 5(1), 14-32.
Lester, D., Parnell, J., & Carraher, S. (2003). Organizational life cycle: A fivestage empirical scale. International Journal of Organizational Analysis, 11(4), 339-354.
Lester, D., Parnell, J., Crandall, W., & Menefee, M. (2008). Organizational life cycle and performance among SMEs: Generic strategies for high and low performers. International Journal of Commerce and Management, 18(4), 313-330.
Lippitt, G., & Schmidt, W. (1967). Crises in developing organizations. Harvard Business Review, 45(6), 102-112.
Lyden, F. (1975). Using Parson's functional analysis in the study of public organizations. Administrative Science Quarterly, 20(1), 59-72.
McCann, J. (1991). Design principles for an innovating company. Academy of Management Executive, 5(2), 76-93.
Miller, D., & Friesen, P. (1984). A longitudinal study of the corporate life cycle. Management Science, 30, 1161-1183.
Milliman, J., Von Glinow, M., & Nathan, M. (1991). Organizational life cycles and strategic international human resource management in multinational companies: Implications for congruency theory. Academy of Management Review, 16, 318-339.
Mintzberg, H. (1984). Power and organization life cycles. Academy of Management Review, 9, 207-224.
Mintzberg, H. (1989). Mintzberg on management. New York, NY: The Free Press, 296.
Pelham, A.M., & Wilson, D.T. (1996). A longitudinal study of the impact of marketing structure, firm structure, strategy, and market orientation culture on dimensions of small-firm performance. Journal of the Academy of Marketing Science, 24(1), 27-43.
Penrose, E. (1952). Biological analogies of the firm. American Economic Review, 42(5), 804-819.
Quinn, R., & Cameron, K. (1983). Organizational life cycles and shifting criteria of effectiveness: Some preliminary evidence. Management Science, 29(1), 33-41.
Scott, B. (1971). Stages of Corporate Development-Part 1. Case No. 9-371-294. Boston Intercollegiate Cases Clearing House.
Scott, B., & Bruce, R. (1987). Five stages of growth in small business. Long Range Planning, 20(3), 45-52.
Smith, K., Mitchell, T., & Summer, C. (1985). Top level management priorities in different stages of the organizational life cycle. Academy of Management Journal, 28(4), 799-820.
Tichy, N. (1980). Problem cycles in organizations and the management of change. In, Kimberly, J., & Miles, R. (Eds.), The Organizational Life Cycle (pp. 164-183). San Francisco, CA: Jossey-Bass Publishers.