Organizational Life Cycle Stage Research Articles

CICLO DE VIDA ORGANIZACIONAL E ATIVOSINTANGÍVEIS DE EMPRESAS DE BASE TECNOLÓGICA INCUBADAS

Este artigo tem o propósito de investigar a relação entre os estágios do ciclo de vida organizacional das EBTIs e a estrutura de ativos intangíveis destas empresas. Para tanto, realizou-se uma pesquisa exploratório-descritiva, com abordagem quantitativa dos dados, reunindo as empresas vinculadas às incubadoras de base tecnológica cearenses, com população de 64 empresas e amostra de 41. A identificação dos estágios do ciclo de vida e o exame da estrutura de ativos intangíveis foram realizados por meio das obras de Scott e Bruce (1987) e Sveiby (1998), respectivamente. Para avaliar a relação entre as variáveis, foi aplicado o teste estatístico MANOVA; e, para uma análise mais detalhada dos dados, aplicou-se ANOVAs univariadas. Os resultados demonstram que a estrutura de ativos intangíveis das EBTIs altera-se à medida que as organizações progridem em seus estágios do ciclo de vida organizacional.

Reexamining the relationship between inventory management and firm performance: An organizational life cycle perspective

Existing evidence regarding inventory-performance relationship is inconclusive. A perspective that this paper stresses in considering this relationship is that it might depend on organizational life cycle stage. The underlying assumptions of this argument are that organization’s strategies and relationships vary with its life cycle stage, organizations develop their own strategies to fit between inventory system and organizational settings, and design of inventory system is not a linear process, rather it is a dynamic process that emerges and evolves in response to the power and interests of the stakeholders. Econometric analysis provides support for this argument. Specifically, the results show that while inventory to sales ratio affects organization performance negatively in the initial growth stage and the maturity stage, it exerts a positive and significant coefficient on performance in either the rapid growth stage or the revival stage. An implication of these findings is that existing perspectives might need to be treated as complementary viewpoints, each of which comprises a part of the whole picture because depending on just one single perspective is likely to result in misleading conclusions about the whole structure.

Organisational life cycle, business orientation and performances of architectural firms in Nigeria

This study sets out to investigate the relationships between the organisational life cycles, business orientation and performances of architectural firms, which often start with just the principal and little capital. In the study, the organisational life cycles stages of the firms were identified, and the way that business orientation emphasis changes with the firms’ life cycles were investigated. In addition, the business orientation dimensions that predict the architectural firms’ performance at each life cycle stage were identified. The study was carried out using data collected through self-administered questionnaires from architectural firms in Nigeria. The organisational life cycle stages of the firms were identified using cluster analysis, and the predictors of performances were identified using regression analysis. The results of the study show that only focus on prominence varied significantly with the organisational life cycles of the firms. Another important finding of the study is that market orientation led to better performance at some organisational life-cycle stages, while profit orientation led to better performance at some other stages. It was recommended that firms should choose business strategies that take into consideration their organisational life cycle stages to enhance their performances.

Effect of Representative Leadership Styles on the Composition of Organization Commitment with the Facilitating Role of Organizational Maturity

This study proposes a framework to explore the effect of leadership styles in defining the composition of Organizational Commitment (OC) along effective, normative and continuance dimension. To bring in a more logical choice of leadership styles, limited numbers of representative leadership styles are derived from the long list of styles presented in the contemporary literature. Higher level of organizational maturity is proposed to facilitate the role of leadership style in shaping the composition of OC in three different dimensions. Organizational Maturity is measured by Capability Maturity Model (CMM), stage of Organization Life Cycle and specificity of Organizational Culture. Results support that a more persuasive and participative leadership style enhance the affective and normative commitment while continuance dimension of commitment is maintained under authoritative and unilateral style of leadership.

Changing with the Times: An Integrated View of Identity, Legitimacy, and New Venture Life Cycles

To acquire resources, new ventures need to be perceived as legitimate. For this to occur, a venture must meet the expectations of various audiences with differing norms, standards, and values as the venture evolves and grows. We investigate how the organizational identity of a technology venture must adapt to meet the expectations of critical resource providers at each stage of its organizational life cycle. In so doing, we provide a temporal perspective on the interactions among identity, organizational legitimacy, institutional environments, and entrepreneurial resource acquisition for technology ventures. The core assertion from this conceptual analysis is that entrepreneurial ventures confront multiple legitimacy thresholds as they evolve and grow. We identify and discuss three key insights related to entrepreneurs’ efforts to cross those thresholds at different organizational life cycle stages: institutional pluralism, venture-identity embeddedness, and legitimacy buffering.

An empirical investigation of strategic management accounting in hotels

Purpose – The purpose of this paper is to investigate the relationship between contextual factors, strategic management accounting (SMA) and historical performance in hotels. Design/methodology/approach – An empirical survey was conducted on a sample of 106 leading hotels in Greece. Findings – The analysis of the survey data indicates that seven contingent factors affect SMA usage in hotels: The seven factors are perceived environmental uncertainty, structure, quality of information system (IS) information, organizational life cycle stage, historical performance, strategy and size. The findings also indicate that lagging performance affects SMA and that this effect is moderated by the perceived environmental uncertainty. Research limitations/implications – Some of the limitations are inherent to the survey method used, such as the use of perceptual measures and the potential of common method bias. Data were collected from the Greek hospitality industry, and consequently, the results may be generalizable only to that population. Practical implications – The accounting professionals and hotel managers will also be benefited, as the study aims to identify the most relevant SMA tools adopted in the hotel industry, as well as the relationship between these tools and other external and organizational factors. Originality/value – This research adds to the current knowledge in management accounting system design in hotels. This paper increases the understanding as to why hotels are more likely to implement SMA. The results provide the first empirical evidence of the relation between SMA usage, organizational factors, external factors and historical performance in hotels.

Relação dos atributos da contabilidade gerencial com os estágios do ciclo de vida organizacional

o estudo objetiva verificar se há relação entre o uso dos atributos da contabilidade gerencial e os estágios do ciclo de vida organizacional. Os atributos da contabilidade gerencial foram baseados no estudo de Moores e Yuen (2001) e os estágios do ciclo de vida organizacional na proposição de lester, Parnell e Carraher (2003). a população da pesquisa compreendeu as 264 empresas do segmento industrial de máquinas, aparelhos e materiais elétricos listadas na secretaria da Fazenda do estado de santa Catarina, Brasil, e a amostra constituiu-se dos 40 gestores que responderam o questionário. O uso dos atributos da contabilidade gerencial nos respectivos estágios do ciclo de vida organizacional foi evidenciado pela análise descritiva das respostas e o agrupamento das variáveis por meio das respectivas correlações pela aplicação da Análise das Componentes Principais. Os resultados mostram que os atributos da contabilidade gerencial, nos aspectos de seleção e de apresentação das informações, são mais utilizados nas empresas que se encontram nos estágios de crescimento e rejuvenescimento do que nas classificadas nos estágios de nascimento e declínio. Conclui-se que há relação entre o uso dos atributos da contabilidade gerencial e a evolução nos estágios do ciclo de vida das empresas pesquisadas, o que coaduna com os resultados de pesquisas que também adotaram as proposições dos autores que consubstanciaram este estudo.

STRATEGIC DECISION MAKING, ENTREPRENEURIAL ORIENTATION AND PERFORMANCE: AN ORGANIZATIONAL LIFE CYCLE APPROACH

EntrepreneurialOrientation (EO) and Strategic Decision Making (SDM) have been studied in awide variety of settings. However, there is not enough research available thatcombines both topics and studies the ways in which entrepreneurs make strategicdecisions in early stages of organizational life cycle. The purpose of thisresearch was therefore to examine the effects of the factors associated withthe decision maker influencing EO and performance for two categories of firms.The results were achieved by using empirical data from two independent samplesof firms in different stages of organizational life cycle: start-up stage (n=133) and growth stage (n=173). The results show that SDM andcontrol variables have different effects in the two samples; however, for bothsamples there is significant relation between EO and performance. The paperconcludes with a discussion about the results and suggestions for futureresearch.

The Influence of Organizational Life Cycle on Environmental Proactivity and Competitive Advantage

In today’s dynamic environment, it is extremely important to study the circumstances in which environmental management contributes to a firm’s competitiveness. Relying on the dynamic capabilities view, this study empirically examines the relationships between environmental proactivity, organizational life cycle stages, competitive advantage, and industry on a sample of 155 Australian firms. The results of a regression analysis show that the construct of the organizational life cycle is significantly related to environmental proactivity. The results also confirm the well-established positive impact of environmental proactivity on competitive advantage. Surprisingly, we found environmental proactivity was positively related to competitive advantage not only in the innovative stages but also in the conservative ones. Our findings reveal the complex nature of environmental proactivity and help better understand the relationship between environmental proactivity and competitive advantage.

A configuration approach to management control systems design in service organizations

Purpose The purpose of this study is to utilize a configuration approach to examine the relationships between multiple contingent variables and management control systems (MCS) in service organizations from various industries. The contingent variables include service process type, cost leadership and differentiation strategies, environmental unpredictability, change and complexity and organizational life cycle stage. Design/methodology/approach Questionnaires were administered to the financial controllers of service organizations operating in Australia. Cluster analysis is utilized to reveal the MCSs fit. Findings The data reveals that high-performing service organizations are those firms that place high emphasis on a differentiation strategy. The lower performers, on the other hand, are firms with a lack of emphasis on both cost leadership and differentiation strategies. Overall, the data demonstrates that strategic orientation plays an important role in high-performing organizations and the ability to incorporate various contingent situations determines the effectiveness of an organization. Practical implications The potentially broad framework offered in this study allows managers from various service industries to relate the variations in the combination of situations to those of their firms. The service managers’ experience with certain type of combinations can assist them to identify the strategic position of their respective organizations. Consequently, service managers can estimate the prospect for further development to enhance the firm performance. Originality/value This study offers a holistic view of the multiple and simultaneous relationships between contingent factors and MCS design in service organizations using a configuration approach. This paper contributes to the literature on organizational configurations in particular by studying the systematic nature of effective MCSs in service organizations when adapting to the contextual settings of the organizations.

Management control system effectiveness

Purpose– This study aims to examine the association between the use of three types of controls (input, behaviour and output) with the level of employee organisational commitment (EOC) across organisational life cycle (OLC) stages.Design/methodology/approach– Data were collected by a survey questionnaire from a random sample of 343 general managers in Australian manufacturing business units.Findings– The level of EOC was found to be highest in growth and revival stage units, suggesting that EOC relates to the level of innovation. The analysis revealed that the types of controls were significantly associated with the level of EOC. In particular, a significant positive association was found between input controls and the level of EOC in both the birth and revival stages.Originality/value– This study contributes to both the management control system (MCS) literature and practice. First, because only a limited number of studies have examined the effect of MCSs on the level of EOC, and there is no published study to date which has examined the association between the types of controls with the level of EOC from an OLC perspective, this study fills a gap in the literature by examining these associations. Secondly, the findings have important implications for Australian manufacturing organisations. Specifically, by providing an insight into the association between the types of controls with the level of EOC across OLC stages, the results suggest that managers of organisations in the birth and revival stage need to place greater emphasis on input controls so as to enhance the level of EOC.

Financing Social Enterprises

In this Special Issue of the Entrepreneurship Research Journal, we examine emerging and evolving strategies and tools for financing social enterprises. This is a very young subfield of social entrepreneurship; one that has been dominated by practitioners and only recently has attracted scholarly interest. However, it is a vital topic because of the need for more and better resources to bring scale to the pursuit of social and/or environmental mission. It is an immensely fertile field for research. Dees, Emerson, and Economy (2001) remind us that financing for social entrepreneurship should be driven by the human and physical resources required to deliver on the social value proposition (SVP) of the enterprise, which, in turn, must be guided by the activities necessary to accomplish the mission. As SVPs become more ambitious and activities more sophisticated, more capital is required in forms that are appropriate to the organizational structure and life cycle stage of the enterprise. Traditional forms of financing for social entrepreneurship are no longer adequate to the task. They are often short-term, categorical, and transactional in nature (Wei-Skillern et al. 2007), when what is needed are financial resources that free the social entrepreneur to focus on mission achievement (not fundraising) at a scale that yields transformation. This has led to experimentation that has pushed the boundaries of traditional financing, such as Crowdfunding and program-related investments. However, even this has not proved to be enough. The newest idea in good currency in the social entrepreneurship financing arena is social impact investment, which combines financial investment and social and/or environmental impact. Social impact investors seek both financial

The moderating effect of organisational life cycle stages on the association between the interactive and diagnostic approaches to using controls with organisational performance

This study examines the moderating effect of organisational life cycle (OLC) stages on the association between the approach to using controls (interactive versus diagnostic) with organisational performance. Analysis is conducted in respect to Miller and Friesen's (1984) organisational life cycle (OLC) stages (birth, growth, maturity, and revival). Data were collected by a survey questionnaire from a random sample of 343 General Managers in Australian manufacturing business units. The results indicate that the interactive approach was positively (negatively) associated with organisational performance in the growth (revival) stage. The use of the diagnostic approach was positively (negatively) associated with organisational performance in the revival (maturity) stage. The study contributes to the literature linking management control systems and OLC stages by providing knowledge regarding the suitability of interactive and diagnostic approaches to using controls for business units within specific OLC stages.

제품 전략과 CEO 특성이 벤처기업의 성장에 미치는 차별화된 효과: 조직수명주기 단계의 조절 역할

제품 전략과 CEO 특성이 벤처기업의 성장에 미치는 차별화된 효과: 조직수명주기 단계의 조절 역할

The evolution of CEO compensation over the organizational life cycle: A contingency explanation

There continues to be an intense debate in the public domain on executive compensation, usually centered on issues related to its effectiveness and fairness. While there are hundreds of publications on executive compensation, relatively few have investigated the role of organizational evolution on CEO compensation design. To address this research gap, we investigate CEO compensation design in the context of organizational life cycle (OLC). Beginning with an extensive review of the potential links between employee compensation and OLC, and of the theoretical explanations of such links, we introduce a contingency-based framework for explaining the relationships between CEO compensation and OLC stages. We further posit a series of propositions on the relationship between the level and mix of CEO compensation and the four OLC stages in terms of start-up, growth, maturity, and decline. We conclude with suggestions on future research directions.

The use and success of activity-based management practices at different organisational life cycle stages

This study examines the association between organisational life cycle (OLC) stages and the use and success of activity-based management (ABM) practices. The results reveal that maturity and revival stage business units use each level of ABM to a greater extent than those in the birth, growth and decline stages. In addition, while the level of ABM success does not differ across OLC stages, ABM success is dependent upon business units using each ABM practice to the greatest extent. The findings provide managers with an insight into the appropriateness of using ABM practices at different OLC stages.

Management control systems from an organisational life cycle perspective: The role of input, behaviour and output controls

AbstractThis study examines the association between the use of three types of controls (input, behaviour and output) and Miller and Friesen's organisational life cycle (OLC) stages (birth, growth, maturity, revival and decline). Data were collected by a survey questionnaire from a random sample of 1,000 General Managers in Australian manufacturing business units. The results indicate that the extent of use of different controls is associated with OLC stages. Specifically, both behaviour and input controls were found to be used to a significantly greater extent than output controls in both the birth stage and the growth stage, while all three types of controls were used to a similar level in the maturity and revival stages. An examination of the extent of use of controls across OLC stages revealed that each type of control was used to a significantly greater extent in the growth and revival stages than the birth and maturity stages. The study contributes to the literature by linking management control system studies to OLC studies. Most importantly, the study assists Australian manufacturing business units in identifying the appropriate use of controls both in and across OLC stages.

"Diverging Paths: Social, Human, and Intellectual Capital Across Organizational Life Cycle Stages"

While scholars and practitioners alike posit that acquiring the right mix of organizational capital can help achieve and sustain a firm’s competitive advantage, we have little understanding of the type of capital that best fits the various stages of an organization’s life cycle and the effects on firm success. Employing life cycle theory, which suggests that organizations will progress along a prescribed path as the firm reacts to endogenous and exogenous changes, we propose that a diverse selection of organizational capital, including social, human, and intellectual capital, is needed at different organizational stages to enhance a firm’s competitive position and to achieve its strategic goals. We build a framework that considers each stage as an intersection of dynamic life cycle characteristics and environmental factors that drive distinctive organizational capital needs. Our framework reveals that some stages will have substantial similarity in organizational capital needs, but as the organization pro...

"Changing with the Times: An Integrated View of Legitimacy, Logics and New Venture Lifecycles"

New ventures need to be perceived as legitimate to acquire resources. To be perceived as legitimate, entrepreneurs must adapt their ventures to meet the norms and standards of different audiences. As an entrepreneurial venture evolves through different organizational lifecycle stages, so audiences from various institutional settings evaluate it by applying different institutional logics. We conceptually investigate how the cognitive and sociopolitical legitimacy of a technology venture is linked with the institutional logic of critical resources providers’ at each lifecycle stage. This framework provides a basis to describe the legitimacy risks and challenges confronting entrepreneurial firms as they transition from one organizational lifecycle stage to the next. Additionally, we identify the organizational attributes that enable a venture to successfully overcome the legitimacy risks and challenges associated with such transitions.

Relação entre o ciclo de vida organizacional e o planejamento em empresas metalúrgicas do município de Brusque-SC

This paper aims examine the relationship between the stages of organizational life cycle and the process of companies planning. To determine the stage of life cycle it was used the model proposed by Miller and Friesen (1994). The descriptive survey, developed through an accessibility sample, with quantitative analysis, was conducted with 30 companies from metallurgical sector of city of Brusque/SC. In data analysis were used descriptive statistic techniques (mean), discriminant analysis and correlation. The results indicate that the most researched companies are located in the birth and decay phases. The planning artifacts most used are strategies, longterm goals, internal scenarios and investments plans (strategic planning), investment plans in fixed assets (budget) and monitoring cash flow (budget control). We conclude that there is a relation between the life cycle stages and the level of planning used by companies. However, the planning artifacts are used differently, depending of company development stage