Emergence of Organizational Routines in Entrepreneurial Ventures

Abstract

Organizational shared schemata, the common understanding of the overall task of an organization and agreement about business practices, are the core component of organizational routines and source of internal cohesion. The emergence of shared schemata and organizational routines in entrepreneurial ventures are both under-researched areas. Using an exploratory case study we focus on the process through which shared schemata emerge to lay the foundation for routines in new firms. Shared schemata emerge through a three-stage process: individual schemata emergence, partially shared schemata emergence and organizationally shared schemata emergence. Analogical transfer, strong foundational leadership, and horizontal interaction among employees facilitate the development of individual schemata and their evolution into the shared schemata underlying organizational routines.