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Organizational Growth: Linking Founding Team, Strategy, Environment, and Growth Among U.S. Semiconductor Ventures, 1978-1988

Kathleen M. Eisenhardt and Claudia Bird Schoonhoven
Administrative Science Quarterly
Vol. 35, No. 3 (Sep., 1990), pp. 504-529
DOI: 10.2307/2393315
Stable URL: http://www.jstor.org/stable/2393315
Page Count: 26
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Organizational Growth: Linking Founding Team, Strategy, Environment, and Growth Among U.S. Semiconductor Ventures, 1978-1988
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Abstract

This study explores organizational growth in technology-based ventures. We relate characteristics of the founding top-management team, strategy, and environment to the sales growth of newly founded U.S. semiconductor firms. The results indicate significant main and interaction effects for the founding top-management team and market stage on firm growth. In contrast, the technical innovation of firm strategy and marketplace competition were not significant. Finally, the founding top-management team and market-stage effects were increasingly large over time. Overall, these results indicate that both environmental determinism and strategic choice operate on young firms. These findings also suggest chaos-theory linkages to positive-feedback models and sensitive dependence of organizational growth on founding conditions.

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