An empirical test of a stage of growth progression model

This paper presents a stage of growth model for technology based new ventures TBNVs. TBNVs are postulated to evolve through four discrete stages of growth-Conception and Development, Commercialization, Growth, and Stability. Based on a longitudinal sample of 71 ventures in the computer and electronics industries, the hypothesis that TBNVs progress according to this model is tested using the del procedure for prediction analysis of cross-classification tables. The hypotheses are supported, although not all firms progressed as expected. These results suggest that some variation in interstage transition patterns are due to a progression imperative.

[1]  Tom R. Burns,et al.  The Management of Innovation. , 1963 .

[2]  P. H. Friesen,et al.  A Longitudinal Study of the Corporate Life Cycle , 1984 .

[3]  William B. Gartner,et al.  A Conceptual Framework for Describing the Phenomenon of New Venture Creation , 1985 .

[4]  C. Pinder,et al.  The Resurrection of Taxonomy to Aid the Development of Middle Range Theories of Organizational Behavior. , 1979 .

[5]  Danny Miller,et al.  TOWARD A NEW CONTINGENCY APPROACH: THE SEARCH FOR ORGANIZATIONAL GESTALTS , 1981 .

[6]  R. Thietart,et al.  An Empirical Investigation of Success Strategies for Businesses Along the Product Life Cycle , 1984 .

[7]  James D. Laing,et al.  Prediction Analysis of Cross Classifications. , 1976 .

[8]  Ichak Adizes,et al.  Organizational passages—Diagnosing and treating lifecycle problems of organizations , 1979 .

[9]  Roger Hudson,et al.  Designing New Business Startups: Entrepreneurial, Organizational, and Ecological Considerations , 1984 .

[10]  Charles C. Snow,et al.  Research Notes: Industry Differences in Environmental Uncertainty and Organizational Characteristics Related to Uncertainty , 1980 .

[11]  C. C. Snow,et al.  Measuring Organizational Strategies: Some Theoretical and Methodological Problems , 1980 .

[12]  R. Normann,et al.  Management for growth , 1977 .

[13]  K. Cameron,et al.  Organizational Life Cycles and Shifting Criteria of Effectiveness: Some Preliminary Evidence , 1983 .

[14]  Elaine Romanelli,et al.  Inertia, environments and strategic choice: a quasi-experimental design for comparative-longitudinal research , 1986 .

[15]  David A. Whetten,et al.  Perceptions of Organizational Effectiveness Across Organizational Life Cycles. , 1981 .

[16]  L W Fry,et al.  Technology-structure research: three critical issues. , 1982, Academy of Management journal. Academy of Management.

[17]  L. Greiner.  Evolution and Revolution as Organizations Grow , 1997 .

[18]  Robert K. Kazanjian.  Relation of Dominant Problems to Stages of Growth in Technology-Based New Ventures , 1988 .

[19]  Danny Miller,et al.  The Genesis of Configuration , 1987 .

[20]  J. Scott Armstrong,et al.  Estimating nonresponse bias in mail surveys. , 1977 .

[21]  Jeffrey L. Kerr.  Diversification Strategies and Managerial Rewards: An Empirical Study , 1985 .

[22]  J. A. Timmons,et al.  New venture creation : a guide to small business development , 1977 .

[23]  J. Nunnally.  Introduction to Psychological Measurement , 1970 .