Query: Organizational growth: Linking founding team strateg

Candidate papers:

author_names: Kathleen M Eisenhardt

Claudia Bird Schoonhoven
title: Organizational Growth: Linking Founding Team, Strategy, Environment, and Growth among U.S. Semiconductor Ventures, 1978 1988.
year: 1990

abstract: We explore the role of founding teams in accounting for the enormous variation in post entry dynamics of startups. We find that successful startups in terms of growth, survival, and productivity have founding teams with higher human capital. These correlations are difficult to interpret, however, given the endogenous nature of assortative matching between workers and firms and attrition dynamics. In addition, the contribution of the founding team to firm success may derive from the organizational capital that is created in the formation period of a firm rather than the ex ante human capital each founding team member brings to the business. To shed light on these issues, we use a difference in difference identification approach that exploits exogenous attrition in the founding team due to the premature death of founding team members. We find that the loss of a founding team member due to premature death has a persistently large, negative, and statistically significant impact on post entry growth, survival, and productivity of startups. While we find that the loss of a key founding team member or those with high human capital have an especially large adverse effect, the loss of a non key or average human capital member still has a significant adverse effect. The loss of a founding team member is greater for small founding teams but the results are present in both small business intensive sectors and in the High Tech sectors of the economy. *Any opinions and conclusions expressed herein are those of the authors and do not necessarily represent the views of the U.S. Census Bureau, the Federal Reserve Board of Governors or its staff. Disclosure review number DRB B0032 CED 20190315 and CBDRB FR19 398. We thank Emek Basker, Shawn Klimek, Ron Jarmin, Martha Stinson, and participants at the 2019 Comparative Analysis of Enterprise Data and at the LSE 2019 Entrepreneurship Workshop for helpful comments. +Federal Reserve Board of Governors +U.S. Census Bureau SSUniversity of Maryland and U.S. Census Bureau PWharton School, University of Pennsylvania and U.S. Census Bureau Startups and young firms contribute disproportionately to job creation, innovation and productivity growth (Haltiwanger, Jarmin, and Miranda, 2013; Decker, Haltiwanger, Jarmin, and Miranda, 2014; Acemoglu, Akcigit, Bloom, and Kerr, 2019, forthcoming) A hallmark of young firm dynamics is the enormous dispersion in outcomes. Most startups fail in their first five years but conditional on survival, young firms grow faster than their more mature counterparts. Amongst survivors, there is tremendous dispersion in post entry growth rates. While most of the contribution by young firms to aggregate employment and output growth can be attributed to survivors that grow rapidly, relatively little is known about the sources of heterogeneity across young firms that generate up or out dynamics. In this paper, we combine data on new business starts and their founding teams to characterize the relationship between founding teams and young firm dynamics. After examining some basic facts about the relationship between key outcomes for young firms and founding teams, we use premature death shocks to identify the causal effect of an exogenous separation of a founding team member on firm outcomes. Moreover, we consider heterogeneous treatment effects based on the characteristics of the founding team members as well as the characteristics of the firms. We integrate administrative employee employer payroll data with administrative tax information covering non farm employer startups between 1990 and 2015 for a large sample of U.S. states. We focus on employer startups that organize themselves as sole proprietors or corporations where we can capture active business owners and other members of the founding team. Founding teams are identified as all workers with positive earnings in the first year after startup supplemented by business owners of sole proprietors. Using each founding team member's most recent earnings prior to joining the startup as a proxy for human capital, we document new stylized facts about the relationship between human capital composition of founding teams and startup performance. Since the effects of the founding team may be concentrated among certain individuals, we decompose the founding team into two groups: key personnel and non key personnel. Key personnel are identified as the founding team
author_names: Joonkyu Choi

Nathan Goldschlag

John C Haltiwanger

Joyce Kim
title: The Post Entry Growth and Survival of Business Startups: The Role of Founding Teams*
year: 2019

abstract: Based on social cognitive theory, we theorize that collective efficacy plays a mediating role in the relationship between paternalistic leadership and organizational commitment and that this mediating role depends on team cohesion. The empirical results from a study of 238 employees from 52 teams at manufacturing companies show that benevolent leadership and moral leadership, both components of paternalistic leadership, are positively related to organizational commitment and further that collective efficacy mediates the moral leadership organizational commitment relationship. We did not find a relationship between authoritarian leadership and organizational commitment. Besides, it was found that team cohesion negatively moderates the relationship between moral leadership and collective efficacy and positively moderates the relationship between collective efficacy and organizational commitment. Explanations and directions for future research are discussed.
author_names: Ying Chen

Xiaohu Zhou

Kim Klyver
title: Collective Efficacy: Linking Paternalistic Leadership to Organizational Commitment
year: 2019

abstract: The purpose of this study is to evaluate the effect of change management on organizational growth in service industries, Peace microfinance bank is used in this case study. Descriptive survey research design was be used in this case analysis. An interview was also conducted. The population targeted was 15 management staff of peace microfinance bank, 12 responded to the survey. Purposive sampling techniques were used in selection of the respondents due to their designations. The data was collected by the use of structured questionnaire which contained 19 closed ended questions. We found that critical to the success of the change process are awareness to why change is needed and the level of urgency attached to it, top management commitment, level of team work, communication, participation and feed backs given to top management and lower staff. Moving forward we recommend for PMFB to focus on addressing resistance to change by getting all the management staff to commit fully to the change initiative. This will enable them influence other lower staff members to imbibe in the change. Being able to involve every individual in the change process can reduce resistance and enhance the quality of the change management.
author_names: Umar Ibrahim Abbas

Onyishi Chinedu Judith
title: Evaluating the Effect of Change Management on Organizational Growth in Service Industries: A Case Study of Peace Microfinance Bank in Nigeria
venue: The International Journal of Business Management
year: 2019

abstract: To strengthen national competitiveness and sustainability, the high tech industry has been developed as the center of gravity of industrial development in each country, covering the development of new products and the expansion to new customers and markets. Although both aspects are indispensable to high tech firms' growth momentum and competitive advantages, it is difficult to develop them at the same time. In recent years, scholars have been paying an increasing amount of attention to the significance of organizational ambidexterity in different management fields. Importantly, transformed high tech firms are obliged to manage the tensions and conflicts that arise from the exploration of new knowledge and the exploitation of existing knowledge to find an appropriate balance between the two to yield synergistic effects. In this study, an original method was used to measure differences in the degree of ambidexterity. The method establishes a multiplicative term of exploration and exploitation to represent the degree of effect of ambidexterity. The higher the exploration and exploitation are, the higher the degree of ambidexterity will be. This study takes as its objects electronics manufacturing firms in Taiwan that engage in the development of new high tech products. We issued a total of 1000 questionnaires to electronics manufacturing firms in Taiwan and received 228 valid ones. The results indicate that exploitation has a positive effect on performance, and there is an inverse U shaped correlation between exploration/exploitation and performance. Ambidexterity and its interaction with the market orientation were found to have a positive influence on organizational performance. We also investigated the extent to which an organization places emphasis on resources and the influence of resource allocation on organizational performance. We suggest that the co existence of exploration and exploitation is important to organizational performance. Accordingly, developing the two capabilities at the same time conforms to the concept of ambidexterity.
author_names: Michael Yao-Ping Peng

Ku-Ho Lin

Dennis Liute Peng

Peihua Chen
title: Linking Organizational Ambidexterity and Performance: The Drivers of Sustainability in High Tech Firms
venue: Sustainability
year: 2019

abstract: Conventionally, innovation theories have long held the view that innovations stem from either the introduction of breakthrough, or the marginal improvement of, products or processes. Yet according to Shumpeter (1939) new combinations do not necessary require the introduction of new structures or the improvement of existing ones. The redeployment of existing structures (e.g. technology) in new application domains (e.g. new markets) also qualifies as a ?new combination? which is considered as an innovation. the phenomenon of creating new functions for existing structures has been named as ?exaptation? A famous example of an exaptated product is Listerine, and its shift from a surgical antiseptic to an oral health care product. The innovation and entrepreneurship literatures have only recently recognized exaptation as a mechanism for the emergence of new markets, which eventually drives entrepreneurial activity. The creation of exptative combinations requires the flexible interpretation of ?what is already known? in a manner that allow for the identification of potential functional shifts, and in linking identified functions to a fitting context. This raises the question of what determines the capacity to create new venture through new exaptative combinations? Considering that entrepreneurs usually employ knowledge that they gained through prior employment in their search for new opportunities, we argue that the previous experiences of entrepreneurial teams shape their ability to create novel technology market combinations. Since employers are rather heterogeneous in the knowledge that they possess and transfer to their employees, the entrepreneur's knowledge base is dependent on the specific organizations where he/she previously worked. Employment at organizations with substantial abundant knowledge in particular is a significant contributor to developing an individual's knowledge base that may assist him in developing the capacity to discover novel technology market combinations (Agarwal et al. 2004) Hence, we focus on how previous experiences at a large number of employers (high inter organizational mobility) and its interaction with experiences at entrepreneurially prominent organizations with different social structures (Universities vs. KIS firms) shape the creation of new market niches through exaptation. To accomplish this aim, we collected, and analyzed using a probit model, data on 62 new ventures (and their corresponding 124 founders/co founders) that have employed blockchain technology in the energy sector worldwide. Blockchain is an example of an exaptated technology as it was initially developed to keep records of all Bitcoin, the famous cryptocurrency, transactions, and was later exaptated to serve different functions in several industries. Our analysis shows that entrepreneurial teams with high levels of inter organizational mobility are more likely than those with lower levels to create new niche markets through exaptation that teams with low levels of inter organizational mobility. This effect of inter organizational mobility on exaptation is distinct, based on specific prior experience at entrepreneurially prominent organizations with different social structures. In particular, we found a significant complementarity between experience at entrepreneurially prominent universities and high levels of inter organizational mobility. On the other hand, we found a substitution effect between experience at entrepreneurially prominent KIS firms and low levels of interorganizational mobility. Our findings contribute to both innovation and entrepreneurship literatures by proposing and providing evidence that the specific experiences of entrepreneurial teams are the sources of knowledge that permits the creation of new market niches through exaptation, and by suggesting that the entrepreneurial team's experience at entrepreneurially prominent organizations with different social structures can influence the adoption of a certain entry strategy. Our findings may also encourage policy makers to challenge the current status quo (which tends to prioritize new groundbreaking technologies) by qualifying exaptative projects to receive available public grants. We also believe that our results can assist new exaptative ventures in the formation of founding teams. Agarwal, R. Echambadi, R. Franco, A. M. Sarkar, M. B. (2004) Knowledge transfer through inheritance: Spin out generation, development, and survival. Academy of Management Journal, 47(4) 501 522. Schumpeter, J. (1939) Business Cycles: A Theoretical, Historical, and Statistical Analysis of the Capitalist Process. London: McGraw Hill. Exaptation and niche market creation: the role of the founding team's prior experiences Fakher Omezzine Grenoble Ecole de Management, France Fakher.omezzine@grenoble em.com Isabel Maria Bodas Freitas Grenoble Ecole de Management, France Isabel maria.bodas freitas@grenoble em.com
author_names: Fakher Omezzine
title: Exaptation and niche market creation the role of the founding team s prior experiences
year: 2018

abstract: This study empirically examined the propositions that ethical leadership is related to employees' organizational citizenship behavior (OCB) through two psychological mechanisms: (a) a social learning mechanism, where employees emulate their supervisor's behavior such as caring about their organization; and (b) a social exchange mechanism that links ethical leadership to perceived procedural justice and employee's organizational concern. Our theoretical model was tested using data collected from employees in a pharmaceutical retail chain company. Analyses of multisource time lagged data from 93 team supervisors and 486 employees showed that supervisors' and employees' organizational concern sequentially mediated the relationship between ethical leadership and employee OCB. It was also found that the link between ethical leadership and employee OCB was sequentially mediated by perceived procedural justice and employee's organizational concern. Theoretical and practical implications of these findings are discussed.
author_names: Shen-jiang Mo

Junqi Shi
title: Linking Ethical Leadership to Employees' Organizational Citizenship Behavior: Testing the Multilevel Mediation Role of Organizational Concern
year: 2017

abstract: This study examined the influence of organizational identification on employee performance in teams. Drawing on social identity theory and self verification theory, we predicted that organizational identification would have positive effects on employee in role and organizational citizenship behavior (OCB) performance. Building on social exchange theory, the study further theorized that the quality of team member exchange (TMX) would amplify the impacts of organizational identification on both types of performance. Using data from automotive dealer employees in China, we found positive relationships between organizational identification and both types of performance. In addition, TMX altered the impact of organizational identification on OCB.
author_names: Yan Liu

Raymond C H Loi

Long Wai Lam
title: Linking organizational identification and employee performance in teams: the moderating role of team member exchange
year: 2011

abstract: Purpose The purpose of this paper is to study the mediating role of organizational trust in the relationship between perceived organizational support and organizational justice on the one hand and their consequences, namely employees' in role performance and their levels of organizational cynicism on the other. Along with this, accounting for organizational trust as a mediator and organizational cynicism as a critical consequence the authors aim to contribute to the literature pertaining to these variables. Design/methodology/approach Random sampling technique was applied. Data were collected from 237 managerial level employees and 156 of their immediate supervisors of seven privately owned manufacturing and service sector organizations in India. A questionnaire comprising 49 items pertaining to the study constructs was administered. Item analyses were carried out to estimate the reliability of the instrument. A confirmatory factor analysis was conducted to establish the instrument's construct validity and uniqueness of the study constructs. The hypotheses of the study were tested and competing path models were compared using structural equation modeling (SEM) techniques with maximum likelihood estimates. Findings All scales were found to have acceptable reliability estimates. Results of the confirmatory factor analysis established that the manifest variables loaded significantly on their latent constructs and that the latent constructs were empirically distinct. This established the scales' construct validity. The results of the SEM procedures indicated that all hypotheses of the study could be accepted as statistically significant and that organizational trust mediates the path between the independent and the dependent variables. Research limitations/implications The study was cross sectional in design and, as such precluded causal inferences. Data were collected from private sector firms operating in India, and hence, there was a limitation regarding the findings as far as cross national generalization and generalizability among employees of state owned enterprises were concerned. Practical implications The study identified some practical implications related to its findings. These include meeting the affiliative needs of employees, managers as organizational agents must manifest organizational support by regularly interacting with their subordinates, and that managers should address their reportees not as members of a given department but as members of teams and allocate job assignments accordingly. Social implications The findings of the study lend credibility to an interplay between social exchange ideologies, equity sensitivities, and fairness heuristics. Additionally, the results of this study extend the social exchange equity theory literature which has placed social exchange variables as predictors of workplace outcomes in an Indian context. This, further leads to the enhancement of positive consequences such as task performance, and reduces negative outcomes such as cynical attitudes towards the organization. Originality/value The present research is among the first of its kind to examine the study variables vis a vis managerial employees working in India. This study would also qualify to be among the very few studies in India with reference to the social exchange, equity, and fairness heuristics theories.
author_names: Soumendu Biswas

Kanwal Kapil
title: Linking perceived organizational support and organizational justice to employees' in role performance and organizational cynicism through organizational trust: A field investigation in India
year: 2017

abstract: This study's main objective was to determine the effects of strategic planning activities on organizational growth. Issues had been raised by employees that the planning process tended to be inflexible and rigid since it operated in changing environment and poor adaptation to changing environment usually affected organization adversely. They perceived strategic planning process being unrealistic separated with actions which hindered growth, thus strategies not linked with actions. The Researcher in the study therefore sought to analyze the effects of strategic planning on organization growth. The specific objectives of the study was to establish the effect of setting objectives on organization growth ,to assess the effect of budgetary allocations on organization growth, to determine the effect of organization structure on organization growth and lastly to analyze the effect of performance review on organization growth. Descriptive research design was used which included questionnaires to be distributed and filled with various top managers, heads of department, middle level managers and general staff members of KEMRI. Target population in this research was Kenya Medical and Research Institute Management. The target population was divided into various management groups including Heads of departments, middle level managers and general staff members. Stratified random sampling method was used. The target population was two hundred employees. Stratified sampling method was used to draw the Sample size of 50 employees and data analyzed by use of Spss. The findings of the study revealed that strategic planning if well implemented in the organization is effective towards growth. Strategic planning was appropriate, suitable, and reasonable and accepted to the organization. It clearly indicated that strategic planning exist at KEMRI and helped the organization evaluate its business by identifying its long term goals, objectives, organized workforce, monitor performance and allocating resources thus enhancing performance in terms of growth. The researcher recommendations are that set objectives be clear, precise and measurable, organizations to seek more funds which should be directed to research instead of administration, create structures that enable individual teams deal with specifications, Performance review process should enable the actual performance be easily measured and reviewed and in future KEMRI should strive to attain ISO standards to support continuing improvement.
author_names: Odongo Melen Sophia

Datche Owuor
title: Effects of Strategic Planning on Organizational Growth. (A Case Study of Kenya Medical Research Institute, Kemri)
year: 2015