A longitudinal study of the corporate life cycle

  • Miller D
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Abstract

A review of recent litemture on the coiporate life cycle disclosed five common stages: birth, growth, maturity, revival, and decline. Theorists predicted that each stage would manifest integral complementarities among variables of environment ("situation"), strate^, structure and decision making mediods; that organizational growth and increasing environmental complexity would cause each stage to exhibit certain significant differences from aU other stages along these four classes of variaMes; and that organizations tend to move in a linear progression throu^ die five st^ ^ proceeding sequentially from birth to decline. These contentions were tested by this study. A sample of 161 periods (rf history from 36 firms were classified into the five life cycle stages using a few attributes deemed central to each. Analyses of variance were performed on 54 variables of strategy, structure, environment and decision making style. The rraults seemed to support the prevalence of complementarities among variables within each stage and the predicted inter-stage differences. They did not, however, show that organizations went through the stages in the same sequence. (ORGANIZATIONAL LIFE CYCLE; CORPOR

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  • Danny Miller

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