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1 – 10 of over 40000Donald L. Lester, John A. Parnell and Shawn Carraher
Adapting a concept from the biological sciences, organizational researchers have proposed a life cycle of organizational development from birth to death. Several distinct models…
Abstract
Adapting a concept from the biological sciences, organizational researchers have proposed a life cycle of organizational development from birth to death. Several distinct models have been postulated, ranging from three to ten stages. This paper proposes a five‐stage model and tests it empirically to assess the specific stage of the life cycle of any organization. Results of a twenty‐item scale that captures managers' perceptions of their firms' position in the life cycle are discussed. Knowledge of an organization's present position or stage of development can aid top managers in understanding the relationships between organizational life cycle, competitive strategy, and performance.
The behaviour of an enterprise (including ethical behaviour) strongly depends on the organization’s culture, values and beliefs. The purpose of this paper is to demonstrate that…
Abstract
Purpose
The behaviour of an enterprise (including ethical behaviour) strongly depends on the organization’s culture, values and beliefs. The purpose of this paper is to demonstrate that organizational culture differs according to enterprise life cycle stage. Also the importance of the knowledge and awareness of these differences to enterprises’ management in order to be able to ensure enterprises’ success is argued.
Design/methodology/approach
The case study research methodology was applied to explore the differences in the type of organizational culture as well as cultural strength depending on the enterprise’s life cycle stage. For the empirical testing, the author have selected Slovenia, one of the most developed European post-socialist transition countries.
Findings
The research revealed differences in the types and strengths of enterprises’ organizational cultures and showed their dependence on the enterprises’ life cycle stages.
Practical implications
Knowledge of differences in organizational culture in relation to an enterprise’s life cycle stage can significantly contribute to the behaviour of the enterprise’s key stakeholders by ensuring the long-term and sustainable success of the enterprise.
Originality/value
The available literature does not provide similar research of differences in organizational culture in relation to an enterprise’s life cycle stages.
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This study aims to describe and explain the design of management accounting and control systems (MACS) in the growth and revival stages of the organizational life‐cycle of the…
Abstract
Purpose
This study aims to describe and explain the design of management accounting and control systems (MACS) in the growth and revival stages of the organizational life‐cycle of the firm. In addition, it explores how the presence of equity capital investors affects the design of MACS in the case firm in its growth and revival stages.
Design/methodology/approach
A case study method is adopted to illustrate the design of MACS in the growth and revival stages. The data are analyzed to describe events in the two organizational life‐cycle stages, which are then compared to identify special features of the design of MACS.
Findings
The results show that, in contrast to a growth stage, a revival firm develops MACS for the firm's internal managerial and organizational purposes, such as a more diversified business strategy and more diversified organizational structure, as well as for external reasons, such as a more challenging business environment and investors' requirements. Investors require more detailed management accounting information to know how to get a better return on their investments in a revival stage, while investors ensured that the case firm was only using formal MACS in a growth stage.
Research limitations/implications
The life‐cycle approach is the main perspective in data gathering even though this may bias the data. Therefore, not everything may be observed. Even though Friesen and Miller's life‐cycle model allows firm to be established through a merger of several declining firms, the birth of the case firm differs from a typical birth of the firm. This study is exploratory in nature, suggesting new insights that could be followed up in future research.
Practical implications
The information produced by MACS is, at a minimum, equally important in the revival stage as in the growth stage even though MACS are used for different reasons. Therefore, MACS cannot be used in the same way in the revival stage as in the growth stage.
Originality/value
The study describes and explains the design of MACS by comparing the growth and revival stages, while the accounting literature does not traditionally distinguish between growth and revival stages in this respect.
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Donald L. Lester, John A. Parnell, William “Rick” Crandall and Michael L. Menefee
This exploratory study seeks to bridge a gap in the literature by exploring the life cycle‐strategy relationship to discover the preferred strategy for high and low performing…
Abstract
Purpose
This exploratory study seeks to bridge a gap in the literature by exploring the life cycle‐strategy relationship to discover the preferred strategy for high and low performing firms in four of the five stages of the organizational life cycle.
Design/methodology/approach
In total, 600 managers randomly chosen from chamber of commerce membership lists in the southern USA were mailed an extensive scale that included items to measure life cycle stage, generic strategy, industry attractiveness and stability, size, and satisfaction with performance. The instrument included 20 life‐cycle items, four items for each of the five stages.
Findings
Partial support was found for the expected relationship between strategy and performance as firms move through the organizational life cycle. New, high‐performing organizations that were satisfied with their performance preferred first mover strategies, while renewing organizations categorized as high performers also emphasized the first mover strategic approach. Mature high performers preferred a uniqueness strategy over one based on efficiency.
Research limitations/implications
The fifth proposition, concerning declining firms, could not be adequately tested. Other limitations of this study include the limited sample size, the limited size variance of participating firms, and the cross‐industry nature of the sample. Combining the research stream of organizational life cycle with generic strategies and satisfaction with performance complicated the project.
Practical implications
Life cycle and performance research provides managers with a snapshot of high and low performing firms and an understanding of how their situation, decision‐making style, strategy and structure fit. High performers focus on proactive, first mover strategies.
Originality/value
The organizational life cycle is operationalized, demonstrating characteristics for high and low performing firms in each stage except decline.
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Asta Pundziene, Virginijus Kundrotas and Zigmas Lydeka
The paper aims first of all to identify the stage of the life cycle of rapidly growing Lithuanian enterprises and the main challenges that management faces at a particular stage.
Abstract
Purpose
The paper aims first of all to identify the stage of the life cycle of rapidly growing Lithuanian enterprises and the main challenges that management faces at a particular stage.
Design/methodology/approach
The methodology of the study is based on the research works carried out by Hanks and Watson, Miller and Friesen and Kazanjian. On the basis of the selected factors an original questionnaire was developed and administered to eight Lithuanian companies.
Findings
Main findings of the empirical study show that rapidly growing Lithuanian companies correspond to the main life cycle features and face specific problems that were partially reported by numerous research works but also some unique ones. Findings confirm the reliability of the life cycle studies.
Research limitations/implications
The research could be extended to the broader sample, especially into different sectors. Also it would be beneficial to carry out the study in different countries with developing economies to test unique findings of the research.
Practical implications
The findings can be used by managers to predict and prepare for meeting effectively the challenges associated with certain stages of enterprise growth.
Originality/value
The paper is a first attempt to apply organisational life cycle theory in order to systemise the challenges that Lithuanian enterprises face, and to contribute to the development of the debate on organisational life cycle theory reliability.
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J.G. Hunt, B.R. Baliga and M.F. Peterson
This article examines top level management leadership and its impact on organisational excellence. An organisational life cycle model of leadership is developed which posits that…
Abstract
This article examines top level management leadership and its impact on organisational excellence. An organisational life cycle model of leadership is developed which posits that top level leadership requirements differ across different stages of an organisation's life cycle. Such requirements are expanded to include not only those with subordinates but those with external stakeholders. We argue that top managers operate from leadership scripts and utilise judgemental heuristics which tend to drive their leader behaviour and make it difficult to change in order to meet the differing life cycle requirements. A number of strategies that can be used to change these scripts and judgemental heuristics as required are discussed.
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Donald L. Lester and John A. Parnell
This paper aims to present the results of an exploratory study of the organizational life cycle. Rather than approaching the construct from a small‐ or large‐ firm perspective, a…
Abstract
Purpose
This paper aims to present the results of an exploratory study of the organizational life cycle. Rather than approaching the construct from a small‐ or large‐ firm perspective, a model appropriate for all organizations is employed.
Design/methodology/approach
A survey was administered to 107 practicing managers to determine life cycle stage of their organizations and environmental scanning pursuits.
Findings
The study revealed that small firms are not only found in the first two life cycle stages – existence and survival – but also in the decline stage. In addition, support was not found for environmental scanning patterns previously postulated in the literature.
Practical implications
Managers of SMEs who wish to grow their organizations must understand the Gestalt changes necessary for successful progression to a large organization.
Originality/value
One life cycle model is appropriate for all organizations and can be utilized as a transition guide for strategic managers who recognize that their decisions are the real determinants of life cycle stage.
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Rocco Palumbo and Rosalba Manna
Drawing on the “Giffoni Experience” case study, the purpose of this paper is to establish a conceptual link between requisite variety and organizational life cycle. The law of…
Abstract
Purpose
Drawing on the “Giffoni Experience” case study, the purpose of this paper is to establish a conceptual link between requisite variety and organizational life cycle. The law of requisite variety states that – to be viable – a system should be able to achieve the minimum number of states which are required to deal with environmental uncertainty.
Design/methodology/approach
A descriptive case study approach was taken, which allowed a holistic analysis of the subject being investigated. Multiple sources and different techniques were used to collect relevant data, including: document analysis, unstructured interviews with key informants, and participant observation.
Findings
The development of requisite variety is intended to fill the gap between organizational adaptability and increased environmental complexity. The process of requisite variety generation is influenced by the organizational life cycle stages, turning out to be reactive in the early phases of life and proactive in the maturity ones. Ultimately, the development of requisite variety makes the organization able to establish a co-evolving relationship with the environment, which paves the way for greater organizational adaptability and effectiveness.
Research limitations/implications
The research findings are not generalizable; besides, the exploratory nature of this study did not allow to point out a consistent relationship between requisite variety and the organizational life cycle.
Originality/value
To the authors’ knowledge, this is one of the first attempts to examine requisite variety adopting the conceptual lenses of organizational life cycle. Empirical research works dealing with requisite variety are uncommon and generally overlooked by management scholars and practitioners.
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The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is…
Abstract
The essential investments in new product development (NPD) made by industrial companies entail effective management of NPD activities. In this context, performance measurement is one of the means that can be employed in the pursuit of effectiveness.
Yvon Dufour, Peter Steane and Anne Marie Corriveau
The purpose of this paper is to build on the configurational approach to strategic thinking – with the “écocycle” framework – to advance the understanding of the organizational…
Abstract
Purpose
The purpose of this paper is to build on the configurational approach to strategic thinking – with the “écocycle” framework – to advance the understanding of the organizational life cycle. This integrative approach brings new insights into the dynamism of organizational life cycle.
Design/methodology/approach
This framework builds on analysis of the literature on organizational life cycle and extensive consulting and teaching experience with business executives.
Findings
The framework highlights the complex and dynamic nature of thinking and decision making in organizations. It suggests a spectrum of multiple ways of thinking over time, as strategy changes to accommodate each organization’s challenging environment.
Originality/value
The “ecocycle” framework progresses the understanding of organizational life cycle, by incorporating the diverse factors and features into a more unified, holistic and synthetic approach. The framework challenges the linear sequential view of organizational life cycle, and suggests the process of strategy development is not comprised of independent forms or alternative choices, but rather different business practices of organizations aligned with different stages of the strategic thinking cycle.
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