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Organizational growth: linking founding team, strategy, environment, and growth among U.S. semiconductor ventures, 1978-1988.

A study examined organizational growth in 92 U.S. semiconductor firms. The firms were tracked from inception until 1988 or failure. The data were analyzed using a regression model, event-history analysis, successive regressions, and pooled cross-section regressions. The findings indicate signific...

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Published in:Administrative Science Quarterly Vol. 35; pp. 504 - 530
Main Authors: Eisenhardt, Kathleen M., Schoonhoven, Claudia Bird
Format: Article
Published: Administrative Science Quarterly September 1990
Subjects:
Organizational change
New business enterprises
Corporate growth
Business planning
Population density
Economics
Semiconductor industry
Management
United States
Online Access:View this record in EBSCOhost
Summary:A study examined organizational growth in 92 U.S. semiconductor firms. The firms were tracked from inception until 1988 or failure. The data were analyzed using a regression model, event-history analysis, successive regressions, and pooled cross-section regressions. The findings indicate significant main and interaction effects for the founding top management team and market stage on firm growth. These effects were increasingly large over time. In comparison, marketplace competition and the technical innovation of firm strategy were not significant. These results suggest that both environmental determinism and strategic choice affect young firms.