Re-examining organizational life cycles criteria

An analysis of service organisations in growth and maturity stages

Research output: Contribution to journalArticle

Abstract

The understanding on different types of changes within and between organizational life cycle stages may identify the appropriate effectiveness model that could be applied. Hence studies have been undertaken to identify the best match of management techniques at various organizational development stages. Considering that the underlying characteristics of the life cycle model has been established more than three decades ago, the aim of this study is to reexamine the consistency of these organizational characteristics in defining the life cycle stages over years. Based on Miller and Friesen's (1984) organizational model, this paper reevaluates the criteria of the life cycle classification scheme focusing on the growth and maturity stages. Data was collected through a questionnaire survey to top-level management of profit-oriented service firms operating in Malaysia. Using cluster analysis, the service firms are grouped according to the established criteria defining their life cycle stages namely, their strategy, the organizational structure and management decision making style. The findings suggest some inconsistencies with the initial description of growth and maturity levels' criteria. Despite the expectation that the level of complexity of management approaches progress through the life cycle, the findings indicate that growth firms has higher mean score in all measurable items defining their stage of growth. The results also imply the likeliness of other factors influencing firms' adaptation to changes.

Original languageEnglish
JournalJurnal Pengurusan
Volume50
Publication statusPublished - 1 Sep 2017

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Service organization
Maturity
Life cycle
Service firms
Organizational management
Life-cycle model
Firm growth
Profit
Maturity level
Classification schemes
Influencing factors
Cluster analysis
Organizational characteristics
Management decision-making
Development stage
Malaysia
Organizational development
Decision-making styles
Organizational structure
Inconsistency

Keywords

  • Growth and maturity stages
  • Organizational life cycles
  • Service organisations

ASJC Scopus subject areas

  • Business and International Management
  • Accounting
  • Business, Management and Accounting (miscellaneous)

Cite this

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title = "Re-examining organizational life cycles criteria: An analysis of service organisations in growth and maturity stages",
abstract = "The understanding on different types of changes within and between organizational life cycle stages may identify the appropriate effectiveness model that could be applied. Hence studies have been undertaken to identify the best match of management techniques at various organizational development stages. Considering that the underlying characteristics of the life cycle model has been established more than three decades ago, the aim of this study is to reexamine the consistency of these organizational characteristics in defining the life cycle stages over years. Based on Miller and Friesen's (1984) organizational model, this paper reevaluates the criteria of the life cycle classification scheme focusing on the growth and maturity stages. Data was collected through a questionnaire survey to top-level management of profit-oriented service firms operating in Malaysia. Using cluster analysis, the service firms are grouped according to the established criteria defining their life cycle stages namely, their strategy, the organizational structure and management decision making style. The findings suggest some inconsistencies with the initial description of growth and maturity levels' criteria. Despite the expectation that the level of complexity of management approaches progress through the life cycle, the findings indicate that growth firms has higher mean score in all measurable items defining their stage of growth. The results also imply the likeliness of other factors influencing firms' adaptation to changes.",
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AB - The understanding on different types of changes within and between organizational life cycle stages may identify the appropriate effectiveness model that could be applied. Hence studies have been undertaken to identify the best match of management techniques at various organizational development stages. Considering that the underlying characteristics of the life cycle model has been established more than three decades ago, the aim of this study is to reexamine the consistency of these organizational characteristics in defining the life cycle stages over years. Based on Miller and Friesen's (1984) organizational model, this paper reevaluates the criteria of the life cycle classification scheme focusing on the growth and maturity stages. Data was collected through a questionnaire survey to top-level management of profit-oriented service firms operating in Malaysia. Using cluster analysis, the service firms are grouped according to the established criteria defining their life cycle stages namely, their strategy, the organizational structure and management decision making style. The findings suggest some inconsistencies with the initial description of growth and maturity levels' criteria. Despite the expectation that the level of complexity of management approaches progress through the life cycle, the findings indicate that growth firms has higher mean score in all measurable items defining their stage of growth. The results also imply the likeliness of other factors influencing firms' adaptation to changes.

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