Example research essay topic: Organizational Structures Maturity Stage - 2,066 words

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... older business firms having more complex organizational structure; the firm is highly centralized but a little more formal than the firm at an egg stage; functional specialization is adopted, while product commercialization becomes a focal priority; Average sales revenues growth makes up to 300 percent per year, while average employment growth makes up over 100 percent per year) (Hank et al, 1993); Maturity stage (during the maturity stage, business firms usually double in size. The organizational structures are also more complex; however, centralization gradually declines, while formalization increases. Average sales revenues growth makes up to 100 percent per year, while average employment growth makes up over 30 percent per year) (Hank et al, 1993); Diversification stage (during this stage business firms are usually medium-sized, and tend to have more divisional ised organizational structures; The formality is the highest among all other stages in life cycle model, while the centralization is low; Average sales revenues growth makes up to 40 percent per year, while average employment growth makes up over 60 percent per year) (Hank et al, 1993); Yet, it should be mentioned that Hank et al (1993) did not include the decline stage present in other organizational life cycle models, as the researchers consider that Exclusion of decline stages in the majority of models can most likely be attributed to two characteristics of organization decline. First, the impact of decline on organization structure and systems is far less predictable than changes associated with growth. Second, the onset of organization decline may actually occur at any stage of the organization life cycle. (Hanks, 1990 b; Miller & Friesen, 1984) In terms of the entrepreneurs and the role of entrepreneurs in the new ventures, it should be mentioned that the vast majority of available research in the area of entrepreneurship is still focused on the differences between the non-entrepreneurs and entrepreneurs based on sociological, psychological, educational or environmental characteristics (Hornaday, 1971; Brockhaus, 1980).

While examining the role in the new ventures, the researchers are mostly focused on the founders traits, sociological and demographic variables. The empirical studies have produced inconclusive and to a certain extent mixed findings (Low and MacMillan, 1988; Gartner, 1990). The researchers have found that the entrepreneurs were a relatively homogenous set; however, this assumption was later addressed by Gartner (1985), who advanced the hypothesis that the differences between entrepreneurs are more important and valuable than the similarities between them; therefore, it was recommended to study variations among them instead of examining the differences between entrepreneurs and non-entrepreneurs. Smith (1967) also examined the role of entrepreneurs in the new ventures in terms of identification of the types of entrepreneurs, based on their work motivations and personal characteristics (Sexton, et al. 1997).

According to Smith (1967), entrepreneurs can be virtually divided into two categories, 'craftsman' (who are typically paternalistic and had been involved with operations rather than management during their previous work experience) and 'opportunistic' entrepreneurs (who are more likely to have past experience with management) (Sexton, et al. 1997). Other researchers followed the craftsman-opportunistic typology developed by Smith (Filley and Aldag, 1978; Cooper and Dunkelberg, 1986, Lafuente and Salas, 1989), identifying three major types of entrepreneurs, namely, craftsman (who are highly motivated to what they are doing), opportunistic (entrepreneurs who have a talent to derive benefit from market conditions by spotting a particular need) and managerial entrepreneurs, who are more concerned with administrative and managerial details. These findings made possible to advance the hypothesis, according to which the type of entrepreneur affects new venture formation and performance. The researchers claimed that, for example, the managerial / administrative entrepreneur is more likely to be interested in rapid growth of business firm, will have a welfare-growth orientation and will be more focused on building an organization (Smith and Miner, 1983; Filley and Aldag, 1978; Cooper and Dunkelberg, 1984).

The opportunistic / promoter /risk entrepreneur will be more likely to have a profitability orientation and strong networking and opportunity skills. The reason for starting a new firm for type of entrepreneur will be his capability to stop an opportunity or attractive market (Smith and Miner, 1983; Filley and Aldag, 1978; Cooper and Dunkelberg, 1984). He will rather use marketing techniques than product innovations and will be more focused on financial gain than on growth. Finally, the 'craftsman' entrepreneur will be more likely to start a new firm due to his desire for independence and the need to enjoy freedom at work (Smith and Miner, 1983; Filley and Aldag, 1978; Cooper and Dunkelberg, 1984).

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Research essay sample on Organizational Structures Maturity Stage