The Development and Statistical Testing of a Nascent Organization Structure Sequence Model
Abstract
This study identified episodic stages of growth used by nascent hyper-growth firms. Based on the literature, an 11-stage hypothetical episodic Nascent Organization Structure Sequence (NOSS) model was postulated. Sixty-two Inc-500 fastest-growing "gazelle" entrepreneurs identified which of the 11 stages they used or would use to build their business. One-sample chi-square analysis per NOSS stage found that nine of the growth stages were identified as significant (p < .05), resulting in a revised Verified Nascent Organization Structure Sequence (VNOSS) model of high-growth, emerging organizational development. See Figure 1 for a list of the 11 NOSS stages, and Figure 2 for the resulting 9 VNOSS stages. The model contributes to the development of a research foundation that can aid entrepreneurs in changing their structures as they grow their businesses, as well as consultants who help them grow.References
Bhide, A. V. (2000). The Origin And Evolution Of New Businesses. New York: Oxford University Press.
Bird, B., Welsch, H., Astrachan, J. H., & Pistrui, D. (2002). Family business research: The evolution of an academic field. Family Business Review, XV(4), 337-350.
Carter, N. M., Gartner, W. B., Reynolds P. D.. (1996). Exploring start-up event sequences. Journal of Business Venturing, 11(1), 151-166.
Churchill, N. C. (1997). The six-stage route to company maturity. Business Review Weekly, 19(45), 74-76.
Churchill, N. C, & Lewis, V. L. (1983). The five stages of small business growth. Harvard Business Review, 61(3), 150-160.
Cook, R. (2002). The origin and evolution of new businesses. Journal of Small Business Strategy, 15(1), 117-119.
Dennis, W. (2003). Raising response rates in mail surveys of small business owners: Results of an experiment.
Journal of Small Business Management, 41(3), 278-295.
Eggers, J. H., Leahy, K. T., & Churchill, N. C. (1994). Stages of small business growth revisited: Insights into growth path and leadership/management skills in low-and high-growth companies. Frontiers of
Entrepreneurship Research, Proceedings of the 1994 Babson Entrepreneurship Research Conference, Wellesley, MA, 131-144.
Gartner, W. B., Bird, B. & Starr, J. A. (1992). Acting as if: Differentiating entrepreneurial from organizational behavior. Entrepreneurship: Theory and Practice, /5(Spring), 13-31.
Gersick, C. J. G. (1989). Marking time: Predictable transitions in task groups. Academy of Management Journal, 52(2), 274-310.
Gersick, C. J. G. (1991). Revolutionary change theories: A multilevel exploration of the punctuated equilibrium
paradigm. Academy of Management Review, /5(1), 10-37.
Greiner, L. E. (1998). Revolution as organizations grow. Harvard Business Review, (May-June), 55-67.
Katz, J. A. (1993). The dynamics of organizational emergence: A contemporary group formation perspective. Entrepreneurship: Theory and Practice, 13(Winter), 97-101.
Katz, J., & Gartner, W. B. (1988). Properties of emerging organizations. Academy of Management Review, 13(3),429-441.
Knight, F. H. (1921). Risk, Uncertainty and Profit. Boston, NY: Houghton Mifflin.
Koberg, C. S., Uhlenbruck, N., & Sarason, Y. (1996). Facilitators of organizational innovation: The role of life-cycle stage. Journal of Business Venturing, 11, 133-149.
Larson, A., & Starr, J. A. (1993). A network model of organization formation. Entrepreneurship: Theory and Practice, 17(2), 5-16. MacMillan, I. C, &. Katz, J. A. (1992). Idiosyncratic milieus of entrepreneurial research: The need for comprehensive theories. Journal of Business Venturing, 7, 1-8.
Markman, G. D., & Gartner, W. B. (2002). Is extraordinary growth profitable? A study of Inc-500 high-growth companies. Entrepreneurship: Theory and Practice, 27(1), 65-75.
McKelvey, B. (1980). Organizational Systematices. Berkeley: University of California Press.
McMullan, W. E., & Long, W. A. (1990). Developing New Ventures. San Diego: Harcourt Brace Jovanovich.
Mintzberg, H. (1979). The Structuring of Organizations. Englewood Cliffs, NJ: Prentice-Hall.
Mintzberg, H., & Van Der Heyden, L. (2000). Re-viewing the organization. Ivey Business Journal, 65(1), 24-32.
Morrison, A., Rimmington, M., & Williams, C (1999). Entrepreneurship In The Hospitality, Tourism And Leisure Industries. Oxford, England: Butterworth-Heinemann Jordan Hill.
Pinchot, G. (1985). Intrapreneuring. New York: Harper and Row.
Vesper, K. H. (1990). New venture strategies (Rev. ed.). Englewood Cliffs, NJ: Prentice Hall.
Robert A. Fiore is Professor of Management at Springfield College. His research interest is start-ups and growth and the creation of wealth.
Robert N. Lussier is Professor of Management at Springfield College. His research interest is start-ups, business success vs. failure, and family business.