Managing Growth Transitions: Theoretical Perspectives and Research Directions

Abstract

As we begin the twenty-first century, many organizations are facing ever-increasing levels of complexity both internally and with their external environments. For a comparatively small number of organizations, this complexity is magnified by the challenge and opportunity of rapid growth. At a minimum, rapid growth accelerates the pace of internal complexity as structures and procedures are developed to support a larger organization. In addition, the organization's external environment also becomes more complex since growth redefines relationships with suppliers, customers and sources of financing, and most firms attract new competitors to their markets. Since these growth-oriented firms are being increasingly relied upon to generate jobs and economic development in the global economy, their founders and managers need to know about successfully managing the combination of increased complexity and rapid growth.

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