The Organizational Evolution of Technology Based New Ventures: A Stage of Growth Model.

Based upon two case studies, this paper develops a four stage model of growth for high technology new ventures. A review of the literature finds that existing models define stage of growth through a description of internal structural characteristics. By defining stage of growth in terms of the types and dominance of problems, a further understanding of growth issues becomes possible. The successful transition of a firm from one stage to another is seen as a process of organizational learning. Propositions regarding stages and their effects on organizational design elements are offered and subsequent empirical research in progress is outlined. [ABSTRACT FROM AUTHOR]