Entrepreneurial teams: Comparing high‐growth software firms through structure and strategy

Abstract

Purpose

The purpose of this paper is to explore hypothesis that high‐growth firms founded by entrepreneurial teams use a unique combination of organic structure and emergent strategy.

Design/methodology/approach

A quantitative study of 445 software development firms in the USA and 219 firms in Ireland was undertaken with a valid response rate of 22 per cent and 38 per cent, respectively.

Findings

Generally, all classifications of firms in the USA and in Ireland demonstrated a combination of organic structure and emergent strategy at the beginning of their existence. As the US firms grew older they moved towards a combination of organic structure and deliberate strategy, while Irish firms moved towards a combination of mechanical structure and deliberate strategy that was hierarchical and organised.

Research limitations/implications

The survey was conducted in only one industry and some firm classifications had small cell sizes.

Practical implications

The ambition of this study was to offer owner‐managers an evidence‐based structure/strategy combination that would support the attainment of high‐growth.

Originality/value

This was the first occasion that the concept of a combination of structure and strategy was explored as an explanation for high‐growth amongst firms founded by entrepreneurial teams.

Citation

Cooney, T.M. (2009), "Entrepreneurial teams: Comparing high‐growth software firms through structure and strategy", Management Research News, Vol. 32 No. 6, pp. 580-591. https://doi.org/10.1108/01409170910963000