TECHNOLOGY AND ORGANIZATIONAL GROWTH

Abstract

ABSTRACT It is often assumed that companies involved in new technology are at the beginning of the product life cycle, and will expand and grow over time if given sufficient support. The authors conclude that technologically based firms fit into specific niches related to stages of the technological-diffusion cycle. These firms can be described as Creators, Engineers, Adaptors, Users, and Exploiters. The characteristics of these organizations suggest that only Adaptors, Users, and Exploiters have realistic prospects for dynamic growth; Creators and Engineers tend to remain at the early development stages. Growth is limited by the positioning within the technological development cycles and strategies. Companies adopt strategies such as segmentation, domination, searching and reacting which also influence growth. Firms which focus upon a segmented niche tend to remain small. Firms which adopt a dominant strategy, along with the position of Adaptors, Users or Exploiters, provide growth.