Abstract
Organizational growth and development are spurred by changes that arise as a result of business development. These organizational changes are most often explained in theory as a reaction to the resulting crisis, which ends in a transition from one to the other stage of organizational development. While in theory this topic is significantly explored within the traditional organizational forms, the changes that arise in the process of development of new technology startups are insufficiently researched. In the process of reaching business success in a highly turbulent environment, these temporary organizations are looking for a repeatable and scalable business model that will continuously deliver value to a large number of customers. In the process of development of new technology startups, there is a need for continuous changes and alignment within the organizational elements in order to achieve their goals. This paper is focused on the key changes that happen in the early stages of developing technology startups, with the aim of elaborating the most important elements of these changes that should lead to the successful development of technology startups.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Adler, P.S., Goldoftas, B., Levine, D.I.: Flexibility versus efficiency? A case study of model changeovers in the Toyota production system. Organ. Sci. 10(1), 43–68 (1999)
Auken, H.E.V., Neeley, L.: Evidence of bootstrap financing among small start-up firms. J. Entrep. Small Bus. Finan. 5(3), 235–249 (1996)
Baum, J.A., Silverman, B.S.: Picking winners or building them? Alliance, intellectual, and human capital as selection criteria in venture financing and performance of biotechnology startups. J. Bus. Ventur. 19(3), 411–436 (2004)
Brüggemann, H.: Entrepreneurial leadership styles: a comparative study between startups and mature firms. Bachelor’s thesis, University of Twente (2014)
Burton, R.M., Obel, B., Håkonsson, D.D.: Organizational Design: A Step-by-Step Approach. Cambridge University Press, Cambridge (2015)
Chen, M.H.: Entrepreneurial leadership and new ventures: creativity in entrepreneurial teams. Creativity Innov. Manage. 16(3), 239–249 (2007)
Chesbrough, H., Rosenbloom, R.S.: The role of the business model in capturing value from innovation: evidence from Xerox Corporation’s technology spin-off companies. Ind. Corp. Change 11(3), 529–555 (2002)
Colombo, M.G., Grilli, L.: Founders’ human capital and the growth of new technology-based firms: a competence-based view. Res. Policy 34(6), 795–816 (2005)
Colombo, M.G., Grilli, L.: On growth drivers of high-tech start-ups: exploring the role of founders’ human capital and venture capital. J. Bus. Ventur. 25(6), 610–626 (2010)
Colombo, M.G., Grilli, L.: The creation of a middle-management level by entrepreneurial ventures: testing economic theories of organizational design. J. Econ. Manage. Strategy 22(2), 390–422 (2013)
Colombo, M.G., Rossi-Lamastra, C.: 21. The organizational design of high-tech start-ups: state of the art and directions for future research. In: Handbook of Economic Organization: Integrating Economic and Organization Theory, p. 400 (2013)
Colombo, M.G., Mohammadi, A., Rossi-Lamastra, C., Foss, N.J., Saebi, T.: Innovative business models for high-tech entrepreneurial ventures: the organizational design challenges. In: Business Model Innovation: The Organizational Dimension, pp. 169–190 (2014)
Crowne, M.: Why software product startups fail and what to do about it. Evolution of software product development in startup companies. In: IEEE International Engineering Management Conference, vol. 1, pp. 338–343. IEEE (2002)
Cudanov, M., Jasko, O., Jevtic, M.: Influence of information and communication technologies on decentralization of organizational structure. Comput. Sci. Inf. Syst. 6(1), 93–109 (2009)
Daft, R.L.: Organization Theory and Design. South-Western Publishing, Southampton (2004)
Davila, A., Foster, G., Gupta, M.: Venture capital financing and the growth of startup firms. J. Bus. Ventur. 18(6), 689–708 (2003)
Day, J., Mang, P., Richter, A., Roberts, J.: The innovative organization. McKinsey Q. 2, 21–31 (2001)
Blank, S., Dorf, B.: The Startup Owner’s Manual: The Step-by-Step Guide for Building a Great Company. BookBaby, Pennsauken Township (2012)
Duening, T.N., Hisrich, R.A., Lechter, M.A.: Technology Entrepreneurship: Taking Innovation to the Marketplace. Academic Press, Cambridge (2014)
Duchesneau, D.A., Gartner, W.B.: A profile of new venture success and failure in an emerging industry. J. Bus. Ventur. 5(5), 297–312 (1990)
Ensley, M.D., Pearson, A.W., Amason, A.C.: Understanding the dynamics of new venture top management teams: cohesion, conflict, and new venture performance. J. Bus. Ventur. 17(4), 365–386 (2002)
Ensley, M.D., Hmieleski, K.M., Pearce, C.L.: The importance of vertical and shared leadership within new venture top management teams: implications for the performance of startups. Leaders. Q. 17(3), 217–231 (2006)
Esmer, Y., Dayi, F.: Entrepreneurial leadership: a theoretical framework. J. Mehmet Akif Ersoy Univ. Econ. Admin. Sci. Fac. 4(2), 112–124 (2017)
Galbraith, J.R.: The Star Model. Galbraith Management Consultants, Colorado (2011)
Giardino, C., Paternoster, N., Unterkalmsteiner, M., Gorschek, T., Abrahamsson, P.: Software development in startup companies: the greenfield startup model. IEEE Trans. Softw. Eng. 42(6), 585–604 (2015)
Graham, P.: Startup = growth (2012). http://www.paulgraham.com/growth. Accessed 1 Jun 2019
Greenwood, R., Hinings, C.R.: Organizational design types, tracks and the dynamics of strategic change. Organ. Stud. 9(3), 293–316 (1988)
Greiner, L.E.: Evolution and revolution as organizations grow. Harvard Bus. Rev. 50(4), 37–46 (1972)
Greiner, L.E.: Evolution and revolution as organizations grow. Harvard Bus. Rev. 76(3), 55–64 (1998)
Grimpe, C., Murmann, M., Sofka, W.: The organizational design of high-tech startups and product innovation. ZEW-Centre for European Economic Research Discussion Paper, pp. 17–074 (2017)
Gruber, M.: Marketing in new ventures: theory and empirical evidence. Schmalenbach Bus. Rev. 56(2), 164–199 (2004)
Higashide, H., Birley, S.: The consequences of conflict between the venture capitalist and the entrepreneurial team in the United Kingdom from the perspective of the venture capitalist. J. Bus. Ventur. 17(1), 59–81 (2002)
Huber, G.P., McDaniel, R.R.: The decision-making paradigm of organizational design. Manage. Sci. 32(5), 572–589 (1986)
Hulme, T.: Business model framework. http://hackfwd.com/documents/Business%20Model%20Framework.pdf. Accessed 6 May 2019
Hyytinen, A., Pajarinen, M., Rouvinen, P.: Does innovativeness reduce startup survival rates? J. Bus. Ventur. 30(4), 564–581 (2015)
Jovanović, M., Dlačić, J., Okanović, M.: Digitalization and society’s sustainable development–measures and implications. Zbornik radova Ekonomskog fakulteta u Rijeci: časopis za ekonomsku teoriju i praksu 36(2), 905 (2018)
Maurya, A.: Running Lean: Iterate from Plan A to A Plan that Works. O’Reilly Media, Inc., Sebastopol (2012)
Mintzberg, H.: Structure in 5’s: a synthesis of the research on organization design. Manage. Sci. 26(3), 322–341 (1980)
Moogk, D.R.: Minimum viable product and the importance of experimentation in technology startups. Technol. Innov. Manage. Rev. 2(3), 23–26 (2012)
Kamm, J.B., Shuman, J.C., Seeger, J.A., Nurick, A.J.: Entrepreneurial teams in new venture creation: a research agenda. Entrep. Theory Pract. 14(4), 7–17 (1990)
Kaplan, R.S., Norton, D.P.: Alignment: Using the Balanced Scorecard to Create Corporate Synergies. Harvard Business Press, Brighton (2006)
Kariv, D.: Start-up and small business life. In: Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship, pp. 1734–1742 (2013)
Lechler, T.: Social interaction: a determinant of entrepreneurial team venture success. Small Bus. Econ. 16(4), 263–278 (2001)
Oakey, R.P., Rothwell, R., Cooper, S., Oakey, R.P.: The Management of Innovation in High-Technology Small Firms: Innovation and Regional Development in Britain and the United States. Pinter, London (1988)
Osterwalder, A., Pigneur, Y.: Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley, Hoboken (2010)
Paternoster, N., Giardino, C., Unterkalmsteiner, M., Gorschek, T., Abrahamsson, P.: Software development in startup companies: a systematic mapping study. Inf. Softw. Technol. 56(10), 1200–1218 (2014)
Powell, T.C.: Organizational alignment as competitive advantage. Strateg. Manage. J. 13(2), 119–134 (1992)
Pollard, V., Wilson, E.: The “entrepreneurial mindset” in creative and performing arts higher education in Australia. Artivate J. Entrep. Arts 3(1), 3–22 (2014)
Porter, M.E.: Technology and competitive advantage. J. Bus. Strategy 5(3), 60–78 (1985)
Ries, E.: The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Crown Books, New York City (2011)
Scott, M., Bruce, R.: Five stages of growth in small business. Long Range Plann. 20(3), 45–52 (1987)
Sender, S.W.: Systematic agreement: a theory of organizational alignment. Hum. Resour. Dev. Q. 8(1), 23–40 (1997)
Simons, R.: Levers of Organization Design: How Managers Use Accountability Systems for Greater Performance and Commitment. Harvard Business Scholl Press, Boston (2005)
Sine, W.D., Mitsuhashi, H., Kirsch, D.A.: Revisiting burns and stalker: formal structure and new venture performance in emerging economic sectors. Acad. Manage. J. 49(1), 121–132 (2006)
Spiegel, O., Abbassi, P., Fischbach, K., Putzke, J., Schoder, D.: Social capital in the ICT sector–a network perspective on executive turnover and startup performance (2011)
Spinelli, S., Adams, R.: New Venture Creation: Entrepreneurship for the 21st Century. McGraw-Hill, New York City (2012)
Swiercz, P.M., Lydon, S.R.: Entrepreneurial leadership in high-tech firms: a field study. Leaders. Organ. Dev. J. 23(7), 380–389 (2002)
Timmons, E., Spinelli, S.: Entrepreneurship for the 21st century. New Venture Creation 3, 249–256 (2003)
Van de Ven, A.H., Hudson, R., Schroeder, D.M.: Designing new business startups: entrepreneurial, organizational, and ecological considerations. J. Manage. 10(1), 87–108 (1984)
Wang, C.J., Wu, L.Y.: Team member commitments and start-up competitiveness. J. Bus. Res. 65(5), 708–715 (2012)
Waterman Jr., R.H., Peters, T.J., Phillips, J.R.: Structure is not organization. Bus. Horiz. 23(3), 14–26 (1980)
Watson, W., Stewart Jr., W.H., BarNir, A.: The effects of human capital, organizational demography, and interpersonal processes on venture partner perceptions of firm profit and growth. J. Bus. Ventur. 18(2), 145–164 (2003)
Weisbord, M.R.: Organizational diagnosis: six places to look for trouble with or without a theory. Group Organ. Stud. 1(4), 430–447 (1976)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Okanović, M.Ž., Jevtić, M.V., Stefanović, T.D. (2021). Organizational Changes in Development Process of Technology Startups. In: Mitrovic, N., Mladenovic, G., Mitrovic, A. (eds) Experimental and Computational Investigations in Engineering. CNNTech 2020. Lecture Notes in Networks and Systems, vol 153. Springer, Cham. https://doi.org/10.1007/978-3-030-58362-0_13
Download citation
DOI: https://doi.org/10.1007/978-3-030-58362-0_13
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-58361-3
Online ISBN: 978-3-030-58362-0
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)