Firm size and environmental scanning pursuits across organizational life cycle stages

Abstract

Purpose This paper aims to present the results of an exploratory study of the organizational life cycle. Rather than approaching the construct from a small‐ or large‐ firm perspective, a model appropriate for all organizations is employed. Design/methodology/approach A survey was administered to 107 practicing managers to determine life cycle stage of their organizations and environmental scanning pursuits. Findings The study revealed that small firms are not only found in the first two life cycle stages – existence and survival – but also in the decline stage. In addition, support was not found for environmental scanning patterns previously postulated in the literature. Practical implications Managers of SMEs who wish to grow their organizations must understand the Gestalt changes necessary for successful progression to a large organization. Originality/value One life cycle model is appropriate for all organizations and can be utilized as a transition guide for strategic managers who recognize that their decisions are the real determinants of life cycle stage.